Handling Cases of Discrepancies in HS Codes on C/O Forms and Customs Declarations

the current regulation at Point h Clause 6 Article 15 of Circular 38/2018/TT-BTC states that if there is a discrepancy between the code on the certificate of origin (CO) document and the code on the import declaration form but it does not change the essence of the origin of the goods and the actually imported goods must match the description on the CO document, the CO document is still considered valid.

Illustrative image (source: internet)

According to the new regulation of Circular 62/2019/TT-BTC, specifically at Clause 2 Article 1 amending Point h Clause 6 Article 15 of Circular 38/2018/TT-BTC, it is stipulated as follows:

- In case there is a discrepancy in HS codes between the CO document and the import customs declaration form but the description on the CO document matches the description on the import customs declaration form, the actually imported goods, the customs authority has a basis to determine the goods according to the HS code on the import customs declaration form, and the supplemented import customs declaration form meets the origin criteria as regulated, the CO document will be accepted.

- In case there is a discrepancy in HS codes between the CO document and the import customs declaration form and the description on the CO document does not match the description on the import customs declaration form, the actually imported goods, the customs authority has a basis to determine that the imported goods are not the goods on the CO document, the customs authority will refuse the CO document and notify on the customs electronic data processing system according to the regulation at Clause 2 Article 22 of Circular 38/2018/TT-BTC.

- In case there is a discrepancy in HS codes between the CO document and the import customs declaration form but the description on the CO document matches the description on the import customs declaration form, the actually imported goods, and the customs authority does not have a basis to determine the goods according to the HS code on the import customs declaration form to meet one of the origin criteria regulated in Decree 31/2018/ND-CP and related guiding documents, including: wholly obtained or produced (WO); regional value content (RVC); change in tariff classification at the chapter level (CC), change in tariff classification at the heading level (CTH), change in tariff classification at the sub-heading level (CTSH); goods produced entirely in the territory of the exporting member country, goods produced from materials with origin from one or more member countries (PE); specific processing or working (SP); tolerance for materials not meeting the tariff change criteria (De Minimis), the customs authority will carry out verification procedures according to Articles 19 and 21 of Circular 38/2018/TT-BTC.

Thus, the new regulation has added provisions allowing the customs authority to refuse the certificate of origin (CO) if there is a basis to determine that the imported goods are not the goods on the CO document. At the same time, it has added provisions on carrying out verification procedures in cases where there is no basis to determine the goods according to the HS code meeting one of the origin criteria in the related documents.

Duy Thinh

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