Classification of goods, import duty, VAT, management policy for air conditioner in Vietnam

Customs issued official letter no. 5148- TCHQ-TXNK dated 12 August 2019 about Classification of goods, import duties, VAT, management policies for air conditioner. The content is as below:

1. Classification of goods

The company may refer to heading 84.15 which describes “Air conditioning machines, comprising a motor- driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated.” and Official Letter No. 1922 / TCHQ-TXNK dated April 3, 2019 (attached) of the General Department of Customs to consider and classify air conditioners with air duct connection.

2. Regarding import tax

In order to determine the tax rate for goods, the Company is requested to base on the Government’s Decree No. 125/2017 / ND-CP dated November 16, 2017 Amendments to certain articles of the Government’s Decree No. 122/2016/ND-CPdated September 01, 2016 on the export duty schedule, preferential import duty schedule, list of commodities and their flat tax rates, compound tax rates and  outside tariff quota rates

3. Regarding VAT

Pursuant to Article 11 of Circular No. 219/2013 / TT-BTC of December 31, 2013 of the Ministry of Finance, VAT rate of air conditioners with a capacity of under 90,000 BTU / h of refrigeration or heating is 10%.

4. Regarding management policies

According to the Prime Minister’s Decision No. 23/2019 / QD-TTg of June 17, 2019, promulgating the list of imported goods subject to customs procedures at the import border gate, air-conditioned goods, with a capacity of 90,000 BTU or less, HS code 8415 must make customs procedures at the import border.

In addition, this item is subject to state quality inspection of imported group-2 goods as prescribed in Circular No. 02/2017 / TT-BKHCN dated March 31, 2017; Decision No. 3482 / QD-BKHCN dated December 8, 2017 of the Ministry of Science and Technology and energy labeling must comply with the Prime Minister’s Decision No. 04/2017QD-TTg of March 9, 2017 regulated list of equipment and appliances to which the mandatory energy labeling and minimum energy efficiency standards are applied, and the roadmap to their implementation.

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