Classification of commodity codes with health foods

Classification of commodity codes with health foods

Through the receiving and responding system to recommendations of businesses, the Lead International Vietnam Joint Stock Company proposed to review the results of commodity code classification at Notice 1844 / TB-KDD2 dated August 17, 2018 for goods in declaration number 10206702075 / A1.

From 2015 up to now, the Vietnam Lead International Joint Stock Company has imported Egorex Omega 369 health food products with ingredients and uses according to the published certification No. 28055/2015 / ATTP-XNCB of the Department of Safety. The food is as follows:

“Ingredients: Each soft capsule contains: Natural fish oil (Omega-3 including EPA + DHA: 210mg) 700mg, Flaxseed Oil 50mg, Borage Oil 50mg, Vitamin E 30IU, Vitamin D3 400IU. Accessories: Glycerin, Gelatin just enough 1 tablet.

Uses: Additional essential fatty acids for the body. Helps support on limiting cardiovascular disease, reducing cholesterol, and triglycerides. DHA and EPA supplementation are essential nutrients for the brain, helping to develop brain and enhance memory. Good for eyes, helps to brighten eyes ”.

Pursuant to the Circular No. 65/2017 / TT-BTC dated June 27, 2017 of the Ministry of Finance on the list of exported and imported goods of Vietnam; Circular No. 40/2016 / TT-BYT dated November 4, 2016 of the Ministry of Health promulgating the list of foods, food additives, food processing aids and tools, packaging materials, and containers food according to the HS code in the import and export tariff that is subject to the specialized management of the Ministry of Health; The company classifies the customs declaration with this item under the commodity code of 2106.90.72 (Other health foods in the health food group 2106.90).

However, on August 17, 2018, Customs Inspection Sub-Department 2, Customs Inspection Department issued Notice No. 1844 / TB-KĐ2 on the analysis results together with the goods codes of the Company. in classification number: 1517.90.90 (Other of heading 1517: Margarine; edible mixtures or preparations of animal or vegetable fats or oils or fractions of other fats or oils in this Chapter).

Pursuant to Clause 2, Article 16 of Decree 08/2015 / ND-CP dated January 21, 2015 of the Government detailing and measures to implement the Law on Customs regarding procedures for customs inspection, supervision and control. In this regard: "2. The classification of goods is based on customs dossiers, technical documents and information on ingredients, physical and chemical properties, features and uses of exported and imported goods ”. Accordingly, the Company does not agree with Inspection Sub-Department 2 on the above classification in the following points:

- The sub-department only relies on some ingredients of the goods (oils) to classify, but ignores other ingredients that make up the use of the product as Vitamin E and Vitamin D3.

- The Branch ignores the features and uses of the product when classifying, ignoring technical characteristics (soft capsules) when classifying.

The Lead International Joint Stock Company Vietnam recommended the Ministry of Finance and the General Department of Customs to consider, guide and answer businesses on the above content

Regarding this issue, The General Department of Customs and the Ministry of Finance responded as follows:

The results of analysis are "Health food products with main ingredients are a mixture of fish oil, flaxseed oil, borage oil and other additives, packed with 100 capsules / bottle". According to the document provided by the Vietnam Lead International Joint Stock Company (announced No. 28055/2015 / ATTP-XCB), the ingredients include: natural fish oil 700mg, Flaxseed oil (flaxseed oil) 50 g, Borage Oil (Oil 50g, Vitamin E 30 IU, Vitamin D3 400IU, auxiliary materials include: gelatin, glycerin just 1 tablet (Gelatin and some additives, is the ingredient that makes up the capsule), the use of additional fatty acids is needed for the body.

Thus, based on technical documents, analysis results, product uses, health food item -Egorex omega 369 has the basic ingredient of Fish oil mixture (animal oil). and flax oil, luffa oil (vegetable oil), fortified with vitamins A and D, packaged in soft capsules, can be eaten and used as dietary supplements of essential fatty acids for the body.

The General Department of Vietnam Customs issued Notice 7868 / TB-TCHQ dated August 15, 2018, classifying food supplements: Salmon nutritious cooking oil specially formulated for children to provide DHA & EPA, name by structure (Section 5) "Supplementary food preparations with a main ingredient from fish oil, sunflower oil, vitamin E and other flavoring additives", code 1517.90.90.

Pursuant to Point a, Clause 1, Article 11, Circular 14/2015 / TT-BTC and Point 1.1, Clause 1, Article 12, Decision 2999 / QD-TCHQ dated September 6, 2017 on the Analysis and classification of import and export goods, KD 2 Department has issued an Analysis Notice with the code of the goods according to the code in Notice 7868 / TB-TCHQ dated August 15, 2018.

Basis for goods classification

Circular No. 14/2015 / TT-BTC dated January 30, 2015 of the Ministry of Finance guiding the classification of goods, analysis to classify goods; analysis for inspection, quality, food safety inspection for exported and imported goods stimulates:

“Article 4. Principles of classification of goods

1. One article has only a single code under the list of exported imported goods of Vietnam.

2. Classification of exported goods and imported goods must comply with:

a) Article 26 of the Law on Customs No. 54/2014 / QH13 dated June 23, 2014.

b) Article 16 of the Government’s Decree No. 08/2015 / ND-CP dated January 15, 2015 detailing and implementation measures of the Law on Customs on customs procedures, customs inspection, supervision, and control.

c) Guidance contents in this Circular”.

“Article 6. Classification, application of tax rate for some special cases

1. In case of classification of goods under the provisions of Article 4 of this Circular without determination of the unique code for the list of exported, imported goods of Vietnam, the following documents shall be used:

a) The detailed glossary of HS list.

b) The collection of classification of WCO.

c) The additional glossary of AHTN list.

d) The database on the list of exported, imported goods of Vietnam.”

Compared with the above provisions, Circular 40/2016 / TT-BYT dated November 4, 2016 of the Ministry of Health, is a reference document, not a classification guidance circular.

Classification of goods group 15.17

Pursuant to the list of exported and imported goods of Vietnam, issued together with Circular 65/2017 / TT-BTC dated June 27, 2017 of the Ministry of Finance.

- Note Chapter 15:

1. This Chapter does not cover:

(a) Pig fat or poultry fat of heading 02.09;

(b) Cocoa butter, fat or cocoa oil (heading 18.04);

(c) Edible preparations containing by weight more than 15% of the products of heading 04.05 (usually Chapter 21);

(d) Grease (heading 23.01) or waste of headings 23.04 through 23.06;

(e) Fatty acids, prepared waxes, pharmaceuticals, paints, varnishes, soaps, perfumes, cosmetics or toilet preparations, sulphonated oils or other goods of Section VI; or

(f) Rubber substitutes prepared from oil (heading 40.02).

Refer to the Detailed Note to Chapter 15: “Subject to the Exceptions in Note 1 to this Chapter, animal or vegetable fats and oils and their fractions remain in this Chapter whether used for human consumption or for technical or industrial uses (eg, soap making floors, candles, lubricants, varnishes or paints). ”

- Content of heading 15.17 “Margarine; Edible mixtures or preparations of animal or vegetable fats or oils or fractions of various fats or oils of this Chapter, other than edible fats or oils or fractions that they belong to heading 15.16 ”.

Refer to the Sub-Note to heading 15.17, “This heading covers margarines and food mixtures or preparations made from animal or vegetable fats or oils or from fractions of different fats or oils of this Chapter excluding those of heading 15.16. It is usually a mixture or preparation in liquid or solid form of:

(1) Different types of fats or oils or their fractions;

(2) Different fats or oils or their fractions; or

(3) Both animal and vegetable fats or oils or their fractions. The oil or fat products of this heading may be pre-hydrogenated, may be emulsified (for example, with skim milk), blended or otherwise textured (textured or modified). crystal structure) ... and small quantities of lecithin, starch, color, flavoring, vitamins, butter or other dairy fat may be added (taking into account the limitations given in Note 1 (c) to This chapter).

- Heading 2106 "Food preparations not elsewhere specified or included".

Comparing the above contents, the item with the declared name "Health food -Egorex omega 369" has the basic ingredients of a mixture of fish oil (animal oil) and flax oil, borage oil (real oil substances), fortified with vitamins A and D, for use as an edible (edible) food, conforming to classification 15.17, subheading 1517.90.90 (Rules 1 & 6 apply).

Thus, with classification code 1517.90.90, for the item of which is mixture of animal oil (fish oil), vegetable oil (flax oil, borage oil), fortified with vitamin A, vitamin D, used as food supplement (edible), based on the composition, nature and utility of the goods, ensuring the classification regulations under Circular No. 14/2015 / TT-BTC dated January 30, 2015 of the Ministry of Finance, The List of exported and imported goods of Vietnam is issued together with Circular 65/2017 / TT-BTC dated June 27, 2017 of the Ministry of Finance.

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