Circular No. 8809/TC/TCT regarding the classification of antifungal and deodorizing products for cars and air conditioners

LETTER

OF THE MINISTRY OF FINANCE NUMBER 8809 TC/TCT DATED SEPTEMBER 18, 2001
REGARDING THE CLASSIFICATION OF PRODUCTS FOR MOLD REMOVAL AND ODOR ELIMINATION USED IN MOTOR VEHICLES AND AIR CONDITIONERS

TO: General Department of Customs

In response to the letter number 3615/TCHQ-KTTT dated August 21, 2001 from the General Department of Customs regarding the classification of products for mold removal and odor elimination used in motor vehicles and air conditioners according to the Import Tariff Schedule, the Ministry of Finance provides its opinion as follows:

According to the provisions of the Preferential Import Tariff Schedule issued together 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 of preferential import tariffs for certain groups of goods in the Preferential Import Tariff Schedule issued together with Decision No. 193/2000/QĐ-BTC dated December 5, 2000 by the Minister of Finance; and the principles for classifying goods according to the 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 of the World Customs Organization, import data recorded on CD-ROMs from the World Customs Organization; and the opinion of the General Department of Customs in letter number 3359/TCHQ-KTTT dated August 7, 2001:

- Product: Perfumed or deodorizing preparations already formulated, with or without fragrance or cleansing properties, classified under heading 3307, code 3307.49.00, preferential import tariff rate is 50% (fifty percent).

- Product: Packaged activated carbon products for retail sale used to eliminate odors and cleanse air conditioners and motor vehicles, classified under heading 3307, code 3307.49.00, preferential import tariff rate is 50% (fifty percent).

- Product: Mold removal and disinfectant products for motor vehicles and air conditioners containing a mixture of ingredients including isopropyl methyl phenol, butylparaben, or a mixture of isopropyl methyl phenol with additives to protect against mold growth (e.g., copper-based compounds) or to eliminate existing mold (e.g., formaldehyde-based products), where the main ingredient is a fungicide and odor elimination properties are secondary, classified under heading 3808, code 3808.20.90, preferential import tariff rate is 1% (one percent).

The Ministry of Finance advises the General Department of Customs to instruct local customs authorities to inspect the composition and characteristics of imported goods belonging to one of the three categories mentioned above, determine the actual import tax rates applied to each product, ensure accurate and full collection for the State budget, avoid changing current tax rates causing disruptions in production and business activities or creating loopholes for entities to exploit and request refunds of taxes.