Circular No. 618/TC/TCT regarding the classification of the commodity code for neon lamp transformer

LETTER

OF THE MINISTRY OF FINANCE NO. 618 TC/TCT ON JANUARY 18, 2002
REGARDING CLASSIFICATION OF NEON LAMP TRANSFORMER ITEMS

Dear: - General Department of Customs

- Minh Duc Advertising Company

The Ministry of Finance has received the letter No. 11/09/2001 and No. 25-09-CV dated September 25, 2001 from Minh Duc Advertising Company regarding difficulties in classifying neon lamp transformer items; the Ministry of Finance hereby provides its comments as follows:

Based on the amended and supplemented list of names and import tax rates for certain items under the Preferential Import Tariff Schedule issued with Decision No. 193/2000/QĐ-BTC dated December 5, 2000, and Decision No. 137/2001/QĐ-BTC dated December 18, 2001 of the Minister of Finance; the classification principles of the Import Tariff Schedule as stipulated in Circular No. 37/1999/TT-BTC dated April 7, 1999 of the Ministry of Finance;

After considering the opinions of the General Statistics Office at letter No. 758 TCTK/TMGC dated December 10, 2001; of the General Department of Customs at letter No. 5468 TCHQ-KTTT dated December 4, 2001; and of the Ministry of Industry at letter No. 5354 CV/TCKT dated December 17, 2001 regarding the classification of neon lamp transformer items, it is determined that neon lamp chokes belong to subheading 8504.10.00 under heading 8504:

- In cases where import declaration forms are submitted to customs authorities from January 1, 2001 to January 14, 2002, the preferential import tax rate is 5% (five percent).

- In cases where import declaration forms are submitted to customs authorities starting from January 15, 2002, the preferential import tax rate is 10% (ten percent).

Neon lamp chokes classified under code 85041000 are intermediate electrical equipment between the power supply and neon lamps. Chokes serve to transform voltage throughout the startup process and maintain operation of the lamp, limiting current through the lamp and matching the frequency of the current passing through the lamp with that of the power grid. For electronic chokes, the frequency of the current passing through the lamp is very high (several tens of kHz) compared to the frequency provided by the power grid.

The Ministry of Finance hereby provides its comments for the General Department of Customs and Minh Duc Advertising Company to be aware of and verify imported items to calculate and collect taxes in accordance with regulations.