Công văn 1140/TCHQ-TXNK

To: Customs Departments of Provinces

The General Department of Customs has received enquiries about classification and taxation of food supplements in the form of syrups. Below are opinions of the General Department of Customs:

Pursuant to the Law on Tax administration No. 78/2006/QH11, and the Law No. 21/2012/QH13 on amendments to the Law on Tax administration No. 78/2006/QH11;

Pursuant to Circular No. 14/2015/TT-BTC dated January 30, 2015 of the Ministry of Finance;

Pursuant to Vietnam’s Nomenclature of exports and imports enclosed with Circular No. 103/2015/TT-BTC and Circular No. 65/2017/TT-BTC;

According to the notes in HS 2012 and HS 2017;

1. Classification

1.1. Sugar syrups:

According to the notes of Heading 22.02 in HS 2012 and HS 2017:

“This heading does not include:

... (b) Sugar syrups of heading 17.02 and sugar syrups containing added flavoring of heading 21.06.”

According to the notes in HS 2012 and HS 2017:

“Sugar syrups include syrups of all kinds of sugar (including lactose syrup, except chemically pure sugars of heading 29.40), provided they do not contain added flavoring or coloring matter”

According to these notes:

- Sugar syrups belong to heading 17.02.

- Sugar syrups containing added flavoring matter belong to heading 21.06.

2.2. Goods declared syrup food supplements:

If the goods are not sugar syrups or sugar syrups containing added flavoring matter are qualified as “supplementary food/dietary supplement/food supplement containing multiple ingredients (e.g. water, plant extract, sugar, vitamin, etc.) in liquid form, prepackaged for instant use without dilution, not containing alcohol or alcohol content not exceeding 0.5% by volume” will have the HS code 2202.90.301 according to Official Dispatch No. 7183/TCHQ-TXNK dated November 02, 2017 of the General Department of Customs.2. Taxation:

For goods classified as “supplementary food/dietary supplement/food supplement containing multiple ingredients (e.g. water, plant extract, sugar, vitamin, etc.) in liquid form, prepackaged for instant use without dilution, not containing alcohol or alcohol content not exceeding 0.5% by volume” before November 02, 2017 (the issuance date of Official Dispatch No. 7183/TCHQ-TXNK):

- If the importer declares the tax payable itself (without guidance from the customs) but fails to use the HS code 2202.90.30, tax shall be applied according to the customs dossier, the actual goods and instructions in Official Dispatch No. 7183/TCHQ-TXNK.

- Regarding goods for which the Ministry of Finance and customs authorities have issued instructional documents, tax shall be applied according to the effective date of such instructional documents.

For your reference and compliance./.