Vietnam customs releases price database for various dutiable goods 

Nov 2009
   
The General Department of Customs (GDC) issued Official Letter (OL) No. 5391/TCHQ-KTTT dated 2 October 2009 to the customs departments of provinces and cities in Vietnam.  In this OL, the GDC announced a new price database for various dutiable products imported into Vietnam as well as guidelines on how the customs departments should conduct the inspection of values declared by companies in Vietnam, and how they should determine the customs value of imported goods where the declared prices are lower than the prices set out in the database.
    
According to Circular 40/2008/TT/BTC dated 21 May 2008, the price database will only be used by the customs departments as a tool to assess risks and it will not be used to fix the customs value of imported goods - either by imposing a different price of the goods for duty purposes or by setting a minimum price.  However, in practice, where companies declare a customs value which is lower than the price of identical or similar goods in the price database and they cannot explain the difference in prices to customs, the prices in the database will likely be used as a basis for determining the customs value of the imported goods.
   
The below mentioned goods with the following Harmonized System (HS) codes are included in the price database:

1. Automobiles of various kinds with HS codes 8702, 8703, 8704 and 8705;
2. Motorbikes with HS code 8711;
3. Air conditioning machines with HS code 8415;
4. Washing machines with HS code 8450;
5. Refrigerators with HS code 8418;
6. Internal combustion piston engines with HS codes 8407 and 8408;
7. Gas cookers with code HS 7321;
8. Iron and steel of various kinds with codes HS codes 7207, 7208, 7209, 7210, 7211, 7212, 7213, 7214, 7215, 7216, 7217, 7218;
9. Building glass with codes HS 7004, 7005, 7006, 7008, 7016;
10. Clothes of various kinds with codes HS 5007, 5111, 5112, 5113, 5208, 5209, 5210, 5211, 5212, 5309, 5310, 5311, 5407, 5408, 5512, 5513, 5514, 5515, 5516 and the whole chapter 60; and
11. Alcohol and beer of various kinds with codes HS 2203, 2204, 2205, 2206, 2207, and 2208.

The price database is already being applied by customs departments in Vietnam (it became effective on 6 October 2009).  Hence, companies that are importing goods which are listed in the price database should be aware of the prices listed for their products and should prepare themselves for potential questions from customs where their prices are lower than the ones listed in the price database.