HS Code in Vietnam: How to Classify Goods for Import

HS code in Vietnam means the number that tells customs what your goods are, and it decides the duty you pay. Every import line on a customs declaration needs one. Pick the right code and the duty is correct. Pick the wrong one and you can face extra tax, fines and delays at the port. This guide shows how to find the code, check it and, if needed, ask customs first.

What an HS code is and why it matters

HS stands for Harmonized System. The World Customs Organization keeps it. It sorts traded goods into about 5,000 groups. Each group has a six digit code. Customs services around the world use these codes for tariffs and trade statistics, so a code means the same thing in Hanoi and in Hamburg at the six digit level.

Vietnam adds more digits on top. Its national list follows the ASEAN tariff nomenclature, which is called AHTN. The first six digits are the world HS code. The last digits are for ASEAN and national detail. That longer number is the tariff line on which your duty rate sits.

The code does more than set the rate. It also shows which goods need a licence or a specialist inspection. It also links to the rules for value added tax and for trade deals. One wrong digit can change all of these at once.

Source: World Customs Organization, What is the Harmonized System (wcoomd.org).

Which list Vietnam uses

The Ministry of Finance issued Circular 65/2017/TT-BTC on 27 June 2017. It sets out Vietnam's export and import nomenclature, built on AHTN 2017. It has applied since 1 January 2018. Use this list, not an older one, when you declare goods today.

Many importers still keep old code sheets from earlier years. Check the date on any sheet a supplier or broker gives you. Codes get split, merged and renumbered when the lists are updated.

Source: Ministry of Finance, Circular 65/2017/TT-BTC, 27 June 2017.

How to find the right heading, step by step

Start with the plain facts about the product. Write down what it is made of, what it does, how it is packed and how it is sold. Keep the maker's data sheet and photos. These are your evidence.

Next, work from the top. The list is built in sections, chapters, headings and subheadings. Find the chapter that fits the product, then the heading, then the subheading. Read the chapter notes. They say what the chapter includes and what it leaves out, and they often settle the argument.

Then follow the general rules of interpretation that open the Harmonized System. They tell you to classify by the wording of the headings and notes first. Goods that fit two headings are decided by the rules that follow, such as choosing the most specific description.

Do not pick a code only because a similar product used it. Do not copy the code from a supplier invoice without checking it. Foreign exporters often use the code of their own country, and the last digits will not match Vietnam's list.

Source: World Customs Organization, Harmonized System general rules of interpretation (wcoomd.org).

How to ask customs for a ruling first

Vietnam's Customs Law, Law 54/2014/QH13, lets an importer ask customs to decide the code before the goods arrive. This is called pre-classification, or advance determination of the tariff code. You apply to the customs authority with a written request, a full description of the goods and technical documents. Customs may ask for a sample.

A ruling is worth the effort when the goods are new to you, when the value is high, or when two headings both seem to fit. You get an answer you can show at the border. You also avoid a dispute after the goods have landed and the storage fees are running.

Ask early. Send the request well before the shipment is due, and keep the reply with your import file.

Source: National Assembly, Customs Law 54/2014/QH13.

Mistakes to avoid

Declaring a code only by name is the most common error. Two products with the same trade name can sit in different headings. Declaring by the old list is the next one. A third is splitting one shipment into lines that hide the real nature of the goods.

Check the code against the declaration, the invoice and the data sheet before you file. Ask your customs broker how they reached the code, and ask for it in writing. Keep records so you can show your reasoning if customs asks questions later.

Last, remember that the six digit part is shared worldwide, while the longer Vietnamese code is not. A supplier abroad can help with the first six digits only.

Source: World Customs Organization, What is the Harmonized System (wcoomd.org).

This is general information about customs rules, not legal advice. Check the current text with the customs authority or a licensed adviser before you file.

Sources: wcoomd.org (Harmonized System overview); Ministry of Finance Circular 65/2017/TT-BTC; Customs Law 54/2014/QH13.