Final report module customs procedures major international business

1 CHAPTER 1: OVERVIEW OF HS CODES, CUSTOMS VALUES, AND 1.3 A general summary of software VNACCS/ECUSS ...sssscsssssssssssssessssesssssseensee 4 CHAPTER 2: ANALYZE AND EVALUATE A FEW SELE

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

MAJOR: INTERNATIONAL BUSINESS

BAI HOC TON BUC THANG

TON DUC THANG UNIVERSITY

FINAL REPORT

MODULE: CUSTOMS PROCEDURES

Class code: 706023 Cohort: 1 Semester: 1

MAJOR: INTERNATIONAL BUSINESS

CLASS:19DF0701

Academic year: 2021- 2022 Lecturer: PhD Tran Nguyen Chat

GROUP I

Ho Chi Minh City, 15th of January, 2022

LIST OF GROUP MEMBERS — GROUP 1

COMPLETION LEVEL EVALUATION TABLE

Chapter 2 (2.3) Conclusion

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

EVALUATION OF SUPERVISING LECTURER

Ho Chi Minh City, 15.01.2022 Supervising Lecturer (Full name, Signed and Sealed)

EVALUATION OF MARKING LECTURER

Ho Chi Minh City, 15.01.2022 Marking Lecturer (Full name, Signed and Sealed)

TABLE OF CONTENT

INTRODUCTION 1 4 1 CHAPTER 1: OVERVIEW OF HS CODES, CUSTOMS VALUES, AND

1.3 A general summary of software VNACCS/ECUSS .sssscsssssssssssssessssesssssseensee 4

CHAPTER 2: ANALYZE AND EVALUATE A FEW SELECTED CASE STUDIES 6

2.1 How to determine the HS code for salt-roasted cashews in the customs

2.1.1 A brief introduction about Duy Linh salt-roasted cashews 6 2.1.2 Determine the HS Code of Duy Linh salted roasted cashews 7

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

2.3 Make a pre-registration of import declaration (IDA) on VNACCS/ECUSS .15

2.3.1 General description of consignmen( charaCf€rÏSÏCS -<<e<<c<<< 15 2.3.2 Analysis of data entry steps for imporfed consignmenfs - 16

2.3.2.2 General tab input 2 18 2.3.2.3 Data entry tab details 19

0:3 390).G1-8.9)00i909000115 26

3.1 Overall assessment of situation-specific encountered during practice some case

3.2 Evaluation applicability and proposing some solutions practicality 0 27

APPENDIX - CUSTOMS DUCUMENTS | ccceceeeeeeeeteeetentesteeneeseeeeees 29 3423.3901921 38

CIF Cost, insurance, and freight

(Incoterms)

Standardization

LIST OF TABLES

Table 1 The final result for the customs value of the chosen imported items 13

LIST OF PICTURE

Picture 1 The customs value declaration and inspection process in workplace 4

Picture 3 Results from the import and exportf tariff schedule 2022 8

Picture 5 Results from the import and export tariff schedule 2022 (heading) 10

Picture 8 General tab practice results on VNACCS/VCIS .sccsccsscsceccesseseeeseeseeeseeees 17 Picture 9 General tab 2 pracfice resulís on VNACCS/VCTS -<<c<<<e 19 Picture 10 General tab detail pracfice results on VNACCS/VCTIS 20

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 do 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/ECUSS5

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/ECUSS 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

CHAPTER 1: OVERVIEW OF HS CODES, CUSTOMS VALUES, AND DECLARATION SOFTWARE

VNACCS/ECUSS 1.1 A general summary of the HS code

The World Customs Organization - WCO devised an internationally recognized system of names and codes to identify items being sold on a global scale, known as the HS Code (Harmonized System Code) Customs officials will levy import and export taxes on firms based on this code and can determine the total import and export tax When determining HS codes, we must follow six rules in sequence, which are as follows:

- Rule 1: General rule of thumb

- Rule 2: Unfinished products and compounds in the same group

- Rule 3: Goods are at first glance located in many groups

- Rule 4: The most similar goods

- Rule 5: Containers, packaging

- Rule 6: Explain how to properly classify and compare

The HS code's mission is to ensure that firms comply with both domestic and international legislation To begin with, the HS code assists us in classifying goods and determining the appropriate tax rate in accordance with state regulations Furthermore, businesses will be aware of all the taxes that must be paid, avoiding the situation in which businesses must pay tax multiple times or go through tax refund procedures, for stakeholders this necessitates a significant amount of time and work and businesses will benefit from free trade agreements (FTAs) in accordance with regulations when they determine exactly HS code and as soon as possible Second, the HS Code aids in the systematic classification of goods; goods are uniformly coded visually for all countries in order to make it easier for people to understand and simplify the work of relevant organizations and individuals; this also aids in the negotiation of trade treaties as well as the application of treaties/agreements between the countries’ customs authorities Furthermore, early preparation of procedures and correct identification of the HS code can assist firms in making a good impression and reputation on Customs authorities, resulting in faster customs clearance of goods 1.2 A general summary of the customs values

Customs appraised the value of imported products, which was used to calculate the amount of import duty and other taxes It can be calculated in a variety of methods, but the most popular is transaction-value, which includes any costs incurred by the buyer, such as packing charges, license fees or royalties, and any other sum that accrue to the seller, in addition to the price paid by the buyer to the seller The customs officer (rather than the importer, exporter, or customs broker) has the last word in determining the value of a shipment Also known as the value of customs imports

According to O Desyatny (2021), the goals of customs regulation should be to protect the state's national customs interests and security When individuals and legal entities transfer commodities across the customs border, customs regulation is utilized Scientist I Ivashchuk (2010) proves that customs is a system of measures that regulate the import, export, and transit of products and other objects moving over a

country's border, as well as their customs taxation, registration, and control

The worth of exported or imported items used in tax calculations and customs data is known as customs value to calculate export and import taxes, as well as statistics on imported and exported items Customs operations are the "key" between international goods interchange, bringing 2 main benefits First, to speed up the execution of products, harmonization of forms and papers, standardization of data, simplicity, and automation of customs procedures are all used to facilitate commerce Second, The declaration form aids customs in controlling items that have entered the country and may have an impact on the economy, security, or environment The following is a diagram describing the circumstances when determining the customs value in practice Looking at the diagram, we could see that there were three cases, but because of the limited scope of the study, we were only applying one of three In particular, according to current regulations, enterprises or authorized persons shall have to conduct their own 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 passing a declaration, if the declarations are to distribute gold or red, goods shall be subject to

customs inspection For results related to customs values, three situations will occur,

which are sufficient to refute the value of declaration or question the value of declaration or the accepted value of declaration If your enterprise's goods fall into

the first situation, then the customs office will require additional declarations, and if

your business intentionally fails to perform or misrepresent information, the customs office will impose a tax rate and in the long run make an bad impression on them

responsible for the accuracy and truthfulness

lentted 1 woe Ỷ

inspection of records and - Customs documents: contract

invoice, transport document

The customs authority checks the value

Request for Appoint a / oe

ges representative to smh | Clearance | Consultation Explain — YS

Picture 1 The customs value declaration and inspection process in workplace

Source: hitps:/hptoancau.com/ 1.3 A general summary of software VNACCS/ECUS5

In the past, when customs was first implemented using VNACCS/VCIS electronic software, this software became very popular, but the enterprise has now replaced the VNACCS/ECUSS software developed by Thai Son as it is more modem and has more convenient functions for the business While the VNACCS/VCIS software was recently implemented by The Vietnamese Customs Agency, running from November 2013 and officially introduced in early April 2014, the

VNACCS/ECUSS is essentially software designed to the standard of electronic customs systems, but, in optimal terms, it not only satisfies the professional processes but also has a more convenient function for businesses to identify themselves Currently, the software has been standardized by the General Department of Customs and Permits the exchange of information with the VNACCS/VCIS system under official No 1120 / CNTT-IT as of 17 November 2015

Similar to VNACCS/VCIS, VNACCS/ECUSS software also satisfies the

transactions used to make such procedures as duty-free catalog registration procedures; Procedures for general application of both trade and non-trade; Simple procedures for low-value goods; Article 17 - Management of goods for temporary import or re-export; The license registration utilities; With documents from a national

gate; Shipping for ship agencies, ship agencies These two types of software differ only in terms of modern functionality but they are intended to save companies more time when declaring on a machine than on paper and easier to manage saved data, avoiding errors in the process of repeating or missing important documents In fact, most businesses today have switched to VNACCS/ECUS5 but to help students understand basic knowledge, VNACCS/VCIS software is still widely used by universities in practice and teaching to make it easier for students to learn and learn, and do not cost to buy declarations.

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

Duy Linh Co., Ltd was officially established in 2006, this is one of the companies in the "top" of prestigious brands specializing in purchasing, processing, and supplying prestigious cashew nuts for domestic and international markets Duy Linh, who has more than ten years of expertise, is always interested in learning about the market's demands and how to fulfill the increasingly stringent criteria of clients

As a result, they continue to enhance processing technology and cashew nut manufacturing in accordance with BRC food safety and hygiene regulations, as well

as ISO 9001: 2015 quality management standards In terms of business, the firm specializes in delivering salted roasted cashews, roasted garlic and chile cashews,

pear house cashews, fresh cashews, and other items made from cashews that are food

safe, do not include dangerous chemicals, and satisfy international requirements

Customs Procedures

Duy Linh salt- roasted cashews

NEW PRODUCT

Picture 2 Duy Linh salt-roasted cashews

Salt-roasted cashews are a healthy nut prepared from cashews with the outer silk shell remaining intact To make a tasty snack, combine pure salt seeds with them and roast them together The proportions of table salt and cashews in a recipe that achieves a great level, as well as the roasting procedure, are crucial Cashew nuts have a crispy silk shell after being properly roasted, and the inside section is yellow, eye-catching, and has a distinct scent Salted roasted cashews have become a popular snack due to their easy-to-eat and addicting taste, as well as their high content of

beneficial natural minerals Cashews are high in vitamins E, K, and B6, as well as antioxidants and important minerals including calcium, potassium, sodium, and iron,

according to a study In terms of application, cashews contain a lot of vitamins such

as vitamins E, K, B6 along with antioxidants and beneficial minerals such as Calcium, Potassium, Sodium, Iron, Copper, Magnesium, Furthermore, cashew kernels have

enough fat, fiber, and protein to meet the needs of the human body Cashew nuts are

a good source of energy as well since they contain a high amount of carbs Users will receive around 553 calories from 100g each package The consumption of salted roasted cashews can also aid with weight loss, cardiovascular disease prevention, cancer prevention, nervous system health, and so on

2.1.2 Determine the HS Code of Duy Linh salted roasted cashews

Step 1: Type "cashew nuts" into the search box

My group downloaded the 2022 import and export tariff on the computer at this point because we didn't know what the HS code for the cashew nut was at the time, so we took notes on some of its real descriptions in order to figure it out My team utilized the phrase "cashew nuts" in this part to find out where their items are in the tariff, as well as some basic information about the product:

- Exact name of the product: Duy Linh Salted Roasted Cashew Nuts

- Brand: Duy Linh

- General description: The combination of cashews and pure salt, then roasted and mixed together to create a delicious snack It depends on the mixing ratio

of ingredients between salt and cashews along with the roasting technique Cashew nuts, after being roasted properly, will have a crispy silk shell, the inner part is yellow, eye-catching, and has a unique aroma With an easy-to- eat and addictive taste along with healthy natural minerals, salted roasted cashews have become a very famous snack

- The average nutritional composition in 100g of cashews provides about 553 calories

- Raw materials for the production of products: cashew nuts, salt

- Made in Viet Nam

Step 2: Determine the HS code for the "cashew nuts" product

1 Rule 1: Notes and IDs for each chapter

In this first rule, my group used the import and export tax schedule 2021 to determine the part and chapter of cashew nuts My crew specifically discovered and determined the following:

- Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes in Part IV

- Chapter 20 include vegetables, fruits, nuts, and other plant components preparation

(SEN): Tham khảo Chủ giải bổ sưng (SEN) của Danh mục Thué quan hai hoa ASEAN (AHTN) 2017

RUQU MANH VA GIAM; THUOC LAVA BEVERAGES, SPIRITS AND VINEGAR;

Chủ giải Note

7 Phần nây khái niệm “vién” chi cac san phdm 1 in thìa Section the term "peliets” means

được liên kết bằng phương pháp ép trực tiếp hay which have been agglomerated either directy by

Đằng cách pha tôm chất kết đính eo tỷ lộ không quá compression or by the addition of a binder in a

3% tinh theo trọng lượng Proportion not exceeding 3% by weight

Chương 20 Chapter 20

CAC CHE PHAM TU RAU, QUA, QUA PREPARATIONS OF VEGETABLES,

HACH (NUTS) HOAC CAC PHAN KHAC FRUIT, NUTS OR OTHER PARTS OF

UA CAY

Chủ giải Notes,

1 Churong nay khdng bao gồm: 1 This Chapter does not cover

(®) Các loại rau, quê hoée qué hech (nuts), duge ché

biến hoạc báo quân seo quy trình đâ ghí rong

Chương 7, 8 hoặc 11

(b) Các chế phẩm fực phẩm có trên 20% tinh theo

lượng lê xục xích Địt phụ phẩm đọng tt sau: (b) F oođ preparabons containing more van 20 % by

giết mỏ, tết, cả hoặc động vật giáp xác động vật thân eae conte, ae, mek abel, Baad Sale or

mém hay cac low động vật thủy sinh không xương manweshrytcebnvgosrv invenebrates

ee) Vegetsnien fruit of nuts, prepared or preserved by

1 processes specified in Chapter 7,6 or 11

Picture 3 Results from the import and export tariff schedule 2022

My group looked up the search results on another website, https://caselaw.vn/,

in addition to utilizing the 2022 import and export tariff The following are the results

of my group's search for "cashew nuts."

nowy Wes reowsse — seveecesmgesmmme Gm eR GOIƠCĐVVVAIDI NEIgC00180Đ980 HyongGan Inanntoan Mươnggaasvơvg LIne um

CASEAW

VănBảnPhápluật BảnÁn HọpĐồngMáu TraCứuMãHS CôngCụ Bài Viết

Treg che .¬ -

Kết quá tim kiếm Tất cả (1 mổ MS) nat điêu rang Q Hướng dẳn tra cứu mã HS

Nhập bit kỳ mã KS hoe thông trì mộ tá của mã HS Tìm theo Phần, Chương = Thuế nhập khấu = Sác thuế phải nộp khác tại trang chủ hetps /caselae vn/ hoặc ở tâm kiếm tại ttos//case Xem thêm

oc kết quá

Xem gân đây

Chương 19 « Chế phẩm tơ su, quả quả hạch hoặc các sản phẩm khác của cây

Đứng nhập để theo độc má HỆ đã nem 2908—_]* Quả quá hạch (»vis) và các phần ăn được khúc của cây đã chế biến hoặc báo quán bằng cách

khác, đã hoặc chưa pha thêm đường hay chất tạo ngợt khác hoặc sượu, chưa được chí tết hoặc

Na sử tặc — M§H$đãiwutrữ 25081970) ~ Hạt đều >

Đảng mabe 64 treo db mb HS Ob Key tro

Picture 4 Search results from Case Law

However, based on this information alone, the group is still unable to establish what the product's HS code is According to the theory acquired, the sections and chapters have no legal importance in the categorization of products; they merely serve

to indicate where this category of goods is located We must rely on the glossary and subheading to get the actual HS code since we cannot explain the product in depth if

we simply use the section and chapter That is why my team is still working on the second rule

2 Rule 2: In the same group, incomplete goods and compounds

Rule two, according to the footnotes, only applies to unfinished or

unassembled objects, unassembled or dismantled articles, and combinations or

compounds of components, materials, or substances More specifically, it is stated in the footnote to rule 2b that mixtures and compounds of materials or substances, as well as goods made up of two or more materials or substances that, at first look, appear to belong to two or more separate groupings, must be classified according to the rule of three Hence, according to the preceding hypothesis, my group's cashew nut product did not meet the standards since it is a completed commodity, regarded

as a finished product, and its contents contain a lot of sugar Because the elements are varied, it's only natural to use the rule of three

3 Rule 3: Goods appear to be divided into several groups at first look

Similarly, there are distinct annotations in rule three, but when the group reads item 3a closely, it seems acceptable; this part indicated that the items are described

in numerous groups, with the most explicit descriptions taking precedence over groups with generic descriptions In light of this requirement, my group's product is labeled on the container as Salted Roasted Cashew Nuts My team has clearly determined its direction as a consequence of this; here are the results:

(1): Tham khảo TCVN 4995-2008

Chương 20

CAC CHE PHAM TU RAU, QUA, QUA

HACH (NUTS) HOAC CAC PHAN KHAC

CUA CAY

Mut, thach trai cây, mứt từ quả thuộc chỉ cam

quýt, bột nghiền và bột nhão từ quả hoặc quả

hạch (nuts), thụ được từ quá trình đun nấu, đã

hoặc chưa pha thêm đường hay chất tạo ngọt

Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter

Quả hạch (nuts), lạc và họt khác, đã hoộc chưa pha Nuts, ground-nuts and other seeds, whether or not

trộn với nhau mixed together

Picture 5 Results from the import and export tariff schedule 2022 (heading)

As a result, the subgroup's cashew nut was accurately designated in heading

2008 (Fruits, seeds, and other edible plant components that have been prepared or preserved in any way, whether or not they have been reconstituted with sugar or other sweetening matter or alcohol, not elsewhere specified or included)

Because the group has met the preceding rule, rules four and five will not be applied; instead, the group will go to rule six and reach a final decision In order to assure the legality, commodities must be classified into subheadings of a group in accordance with the content of each subheading, the necessary subheading notes, and the above regulations with suitable changes of details, given that only subheadings of the same level can be compared The appropriate section and chapter notes also apply under this rule, unless the subheading description specifies otherwise To summarize, after reading together and understanding it in-depth, the group has decided the HS code for Salted Roasted Cashew Nuts to be:

10

CAC CHE PHAM TU RAU, QUA, QUA PREPARATIONS OF VEGETABLES,

HACH (NUTS) HOAC CAC PHAN KHAC _s FRUIT, NUTS OR OTHER PARTS OF

CUA CAY PLANTS

3 "0081120 Bơ lạc kg "2 Vis "10 o(MVO "5

2 "00819 — Loạikhác kểcảhỗnhợp:

«9 Fz "is | 10 o(MMOoO Vs

xg y "is 10 oMMo Vs

2 730082010 Đóng bao bikín khí để bán lẻ - + In airtight containers for retail sale kg "eo "40 10 0(MVO s

2 550082090 Loại khác Other *xg "eo "4a 10 0(MVO Ps

1 7200830 -Quảthuộcchicamquft + Citvus fruit

> | - - Đã pha thêm đường hose chit tgo ngot khac hose - - Containing added sugar or other sweetening te es om Fo oma 0 I's

2 "20083090 Loại khác - - Ofer *g "eo "a "10 o(MVo "5

150084000 -Quảiê Pears «9 "sos "35 10 0(MWo Ÿs

- Anh đào (Cherries) - Chemies

++ Da pha thém đường hoặc chất tạo ngọt khác hoặc = - - Containing added sugar or other sweetening

mpiter oF spr

Picture 6 Final resulf of Salted Roasted Cashew Nuts

Looking closely at Figure 4 - 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:

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

GROUP 1 - Customs Procedures

Company A in Ho Chi Minh City (Vietnam) is preparing customs declarations to import from Amorepacific (Korea) a shipment of 200 boxes of "Laneige Lip Sleeping Mask Berry

EX 20g" with an order price of 20 KRW/box under the commercial terms CIF Cat Lai Ho Chi Minh City (Vietnam) incoterms® 2020 The total freight and international insurance for the entire consignment from Seoul (Korea) to City Ho Chi Minh are (Vietnam) KRW 523

Because the seller (the Korean firm) is a licensed

charge of 1% of the FOB price of this cargo to a Thai company An allowed damage certificate at the port of destination states that 10 boxes in the package are locally total amount of tax owed

Picture 7 Customs Procedures

In addition, we also assume other information as follows:

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

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 Pro- Biotics 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 (Gif 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 pay 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

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 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 1 The final result for the customs value of the chosen imported items

taxabl

(taxable FOB value

1% FOB 3,477.00

CIF + Licensing - Damage

axable value for