Circular No. 4136/TC/TCT regarding the classification of tariff codes for irrigation equipment and high-pressure cleaning equipment.

LETTER

OF THE MINISTRY OF FINANCE NO. 4136/TC/TCT DATED APRIL 29, 2002
REGARDING CLASSIFICATION AND CODING FOR IMPORT DUTY ITEMS: SPRAYING EQUIPMENT AND HIGH-PRESSURE CLEANING EQUIPMENT
AND HIGH-PRESSURE CLEANING EQUIPMENT ACCORDING TO THE IMPORT TAX REGIME

To: - General Department of Customs,

- Thien Hoa An Joint Stock Company,

- Thanh Long Trading and Service Company.

In response to the letter No. 4215/TCHQ-KTTT dated September 21, 2001 from the General Department of Customs, the letter No. 20-01/CV dated December 27, 2001 from Thanh Long Trading and Service Company regarding classification and coding for high-pressure cleaning equipment, and the letter No. 66/CV dated December 26, 2001 from Thien Hoa An Joint Stock Company regarding classification and coding for irrigation equipment, the Ministry of Finance provides the following comments: OF LONG THÀNH REGARDING THE CLASSIFICATION CODE FOR HIGH-PRESSURE CLEANING EQUIPMENT, LETTER 66/CV DATED DECEMBER 26, 2001 FROM TIAN HOA AN JOINT STOCK COMPANY REGARDING THE CLASSIFICATION Based on the Import Tariff Schedule issued with Decision No. 1803/1998/QĐ-BTC dated December 11, 1998 by the Minister of Finance; the list of amendments and supplements to names and rates for certain items in the Import Tariff Schedule issued with Decision No. 137/2001/QĐ-BTC dated December 18, 2001 by the Minister of Finance; and the principles for classifying goods according to the Export and Import Tariff Schedule stipulated in Circular No. 37/1999/TT-BTC dated April 7, 1999 by the Ministry of Finance;

Referring to the Harmonized System Explanatory Notes published by the World Customs Organization; opinions from the General Department of Customs in letter No. 141/TCHQ-KTTT dated March 19, 2002; and the General Statistics Office in letter No. 232 TCTK/TMGC dated April 17, 2002; and the Ministry of Industry in letter No. 796 CV/TCKT dated March 7, 2002 regarding classification and import tariff rates for high-pressure cleaning equipment and irrigation equipment: then, these items (excluding hand-held pesticide sprayers) are classified according to the following principles:

- If functional parts (including motor, pump, spray nozzle) are constructed in a single housing forming an inseparable unit, they fall under code 8424.81.90 "other" or code 8424.89.90 "other".

- If functional parts (including motor, pump, spray nozzle) are constructed such that the pump simultaneously performs spraying functions and forms an inseparable unit connected to the motor by a transmission part (e.g., belt or cable), then: the motor is classified separately (gasoline engines under group 8407, diesel engines under group 8408, electric motors under group 8501); the pump performing spraying functions falls under group 8424, code 8424.8190 "other" or code 8424.8900 "other".

- If functional parts (including motor, pump, spray nozzle) are independent and separate units each performing a specific function, connected to one another by transmission parts (e.g., the motor is connected to the pump by belt or cable, the pump is connected to the spraying equipment by belt or cable), then: gasoline engines fall under group 8407; diesel engines fall under group 8424, code 8424.8190 "other" or code 8424.8900 "other".

- IF THE FUNCTIONAL PARTS (INCLUDING ENGINE, PUMP, NOZZLE) ARE SEPARATE AND INDEPENDENT UNITS, EACH UNIT PERFORMS ITS SPECIFIC FUNCTION. The Ministry of Finance replies for the General Department of Customs to implement uniformly and requests Thanh Long Trading and Service Company and Thien Hoa An Joint Stock Company to contact customs authorities for specific resolution.

THE MINISTRY OF FINANCE REPLY TO DIRECT THE GENERAL DEPARTMENT OF CUSTOMS TO IMPLEMENT CONSISTENTLY; LONG THÀNH TRADING AND SERVICES COMPANY, TIAN HOA AN JOINT STOCK COMPANY SHALL CONTACT THE CUSTOMS AUTHORITY FOR DETAILED RESOLUTION.