Chapter 4:

HS CLASSIFICATION
1. Hamonised system was created by......
a) WTO
b) WCO
c) UN

2. How many rule of goods classification are there?

a) 4 rules
b) 5 rules
c) 6 rules
d) 7 rules
e) 8 rules

3. Fill in the banks:

“The Harmonized Commpdity Description and Coding System, or simply the ..... , is an international
nomenclature (at ....-digit level) developed by the ...... for the classification of goods.
a) HS; 6; WCO
b) HS; 4; WTO
c) HC; 6; WTO
d) HC; 4; WCO

4. Arrange the order of Chapters in HS: (i) Raw materials - (ii) Finished products - (iii) Semi-
finised products - (iv) Unworked products
a) (i) – (iii) – (ii) – (iv)
b) (ii) – (iii) – (i) – (iv)
c) (i) – (ii) – (iii) – (iv)
d) (i) – (iv) – (iii) – (ii)

5. Choose the correct answer: “The goods in the HS are arranged in order of their ...”
a) degree of rarity
b) degree of manufacture
c) degree of popularity
d) degree of nature

6. Choose the incorrect statement:

a) GIR stands for “General Interpretative Rules” which privde step-by-step basis for the
classification of goods and to ensure uniform interpretation of the Hamornized System
nomenclature.
b) GIR must be applied in sequential order.
c) Rules one to three of GIFR are related and must be applied in sequence, meanwhile rule four,
five and six stand on their own to be applied as needed.
 d) There are General Rules used in interpreting the tariff.

7. Application of GIRs:
GIR1 Classifying products at the 4-digit Heading level, based on the wording of the
headings and the relative HS Section and Chapter Notes
GIR2 Classifying both incomplete and unassamble goods, and misture and combinations
of goods
GIR3 Classifying products that are, prime facie, classficable under two different HS
headings
GIR4 Classifying products that cannot be classifed accroding to GRI’s 1, 2 and 3
GIR5 Classifying packaging
GIR6 Classifying products at the 6-digit subheading level, based on the wording of the
subheadings and the relative HS Section and Chapter Notes

8. Which of the following statements is true about applying GIR 1?

a) The words in the Section and Chapter titles are to be used to identify exactly which category
the goods belong to.
b) Classfication of goods is determined by the words in the Headings and the Section adn Chapter
Notes that apply to them unless the term of the heading and the notre say otherwise.
c) If the result of applying Rule 1 is ambigous and two or more Headings appear to be applicable,
then Rule 2 should be applied

9. According to Rule 2 (b), a mixed product ay seem to be eligible for classification under two
or more Headings. However, a given product can legally only be classified under one Heading,
therefore ..... must be used to decide between alternate Headings.
a) Rule 1
b) Rule 2(a)
c) Rule 3
d) Rule 4

10. Choose the incorrect statement:

a) Rule 3 sets out three ways of classifying goods which at first sight may fall into two or more
different headings when applying Rule 2(b) or in other circumstances.
b) Rule 3(b) applies to mixtures, composite goods and sets that cannot be classified by use of
Rule 3(a)
c) Rule 3(c) applies only where it is impossible to classify under Rules 3(a) and 3(b).
d) According to Rule 3(c), goods shall be classified under the heading which occurs last in
alphabetical order among those equally merit consideration.

11. According to Rule 4, goods that cannot be classified by Rule 1 to Rule 3 shall be classified
under the heading appropriate to the goods....
a) to which they are most akin.
b) which gives them their essential character.
c) which gives a more complete or precise description of the goods.
12. Choose the incorrect statement:
a) Rule 5(a) would apply to flute cases because flutes are normally sold with their cases and are
intended for long term use.
b) When applying rule 5(a), be carefully with cases where the container gives the product its
essential character, because it would be the container which would have to be classified.
c) Rule 5(b) does not apply to repetitive containers (for example in the case of metal containers
or iron or steel cylinders for compressed or liquid gas).

13. Fill in the banks:

“The customs value is the …… of goods at the ….. importing checkpoint. It is determined by applying
successively …. Methods of customs valuation until the customs value can be determined”
a) buying price; last; 4
b) buying price; first; 6
c) selling price; last; 4
d) selling price; first; 6

14. Which of the following statements is correct about using transaction value to declare on the
customs declaration form?
a) There is no need for a commercial contract between seller and buyer.
b) Being prohibited from selling that item does not affect the buyer's rights.
c) The transaction between buyer and seller can be based on any unspecified transaction value.
d) The relationship between buy and seller must not affect the transaction value.

15. The goods are considered identical if…

a) they look alive in every aspect, even in small details.
b) they look alive in every aspect and might have minor differences such as color, size…but do
not affect transaction value.
c) they do not alike in every aspect but have basic similarities.

16. Which of the following is not considered an example of similar goods?

a) Steel sheets with identical chemical composition, shape and dimension which were imported
for different purposes.
b) Lamps with different wattage but with the same shape and light color and they are
interchangeable.
c) Inner tyres of a four-wheel vehicle produced by two different companies, they have same size
and quality but using different trade marks.

17. Fill in the banks:

“Deductive value is determined on the basis of …. of imported goods in Vietnam market ….
appropriate expenses and profits arising after importation”
a) buying price; minus
b) buying price; plus
 c) selling price; plus
d) selling price; minus

18. Which of the following statements is incorrect?

a) Usual transport, insurance and associated costs incurred within the country of importation
must be deducted from the established price per unit.
b) Commercial invoices will serve as the primary basis for establishing the price per unit
c) The deductible value method does not apply if the goods selected to determine the unit selling
price have not been sold on the domestic market of Vietnam or the sale of goods has not been
calculated on documents and accounting books according to regulations of Vietnamese
accounting law;
d) The deductible value method does not apply if the goods selected to determine the unit selling
price are linked to the account support of any person providing according to regulations.

19. Under the computed value method, customs value is determined...

a) based on the cost of production of the goods being valued plus an amount for profit and
general expenses.
b) based on the cost of production of the goods being valued minus an amount for profit and
general expenses.
c) based on the cost of production of the goods being valued plus an amount for insurance of
international shipping.
d) based on the cost of production of the goods being valued minus an amount for insurance of
international shipping.

20. What is the purpose of Goods Classification?

a) Determine product code
b) As a basis for tax calculation
c) Implement commodity management policy
d) All 3 answers above

21. What does the Supplementary Note (SEN) mean?

a) Additional Notes to the ASEAN Harmonized Tariff Nomenclature
b) Detailed annotations of the Student List
c) Collection of WCO classification opinions
d) All three answers above are wrong

22. What is the value of the notes in a section or chapter?

a) Must be considered first when classifying to that Chapter;
b) For reference only;
c) Considered last when classifying;
d) Not considered when classifying.
23. Customs declarants importing goods that are machinery and equipment in unassembled or
disassembled form due to packaging, preservation or transportation requirements shall classify
according to the following rules:
a) Rule 2(a);
b) Rule 2(b);
c) Rule 3(a);
d) Rule 3(b);

24. A shipment of imported 2-wheeled motorbikes in disassembled form, without tires, is

classified according to the group of items:
a) Tire
b) Motorbike
c) Car engine

25. Chapter 77 of the List of Vietnam's import and export goods is sorted for product groups:
a) Copper and copper products;
b) Groceries made from base metals;
c) Lead and lead products;
d) Provision for future further classification of the system harmony.

26. When determining the customs value of imported goods, if the customs clearance is in
writien form, which methods can be applied interchangeably?
a) Transaction value of imported goods and transaction value of identical imported goods
b) Deductible value and computed value
c) Computed value and fallback value
d) Deductible value and fallback value

27. Which of the following is not a method for determining customs value of imported goods?
a) Method of selling price of identical or similar goods in the Vietnamese market
b) Fallback method
c) Computed value
d) Transaction value of imported goods

28. Transactional prices paid or to be paid for imported goods include:

a) Price stated on the commercial invoice
b) Amounts the buyer must pay but not included in the purchase price stated on the commercial
invoice
c) Adjustment amounts
d) All of the above options

28. Which cases satisfy the conditions for applying the Transactional value method?
a) The Declarer does not have the right to determine goods, which mean he/she can freely sell,
transfer, or exchange.
 b) The transaction is based on a condition that leads to unspecified transaction value, i.e. the
seller only sells if the buyer promises to sell back a specific goods.
c) The buyer does not have to pay back some amount after the sale to the seller.
d) The buyer and the seller are a family.

29. The buyer and seller do not have a special relationship in any of the following situations
a) Also a partnership member contributing capital in business
b) Father-in-law and daughter-in-law
c) Traditional business partner
d) Owner and employee

30. Which method can be applied in case that the goods has additional adjustments but there is
no objective, quantifiable data?
a) Transaction value method
b) Transaction value of identical goods
c) Fallback method

31. According to the transaction value method, the costs of construction, installation,
maintenance, and technical assistance are....?
a) Plus adjustment
b) No adjustment required
c) Deductible adjustment
d) All options are wrong

32. In case the cost of unloading goods from the means of transport at the first import
checkpoint is included in the cost of international transportation, then....?
a) That cost must be deducted from the customs value
b) That cost must be added to the customs value
c) No adjustment required

33. Company A in Japan agrees to sell new cars to company B in Vietnam for 1,000 USD/car
under the condition that buyer A will have to import 100 more cars. Does any transaction satisfy
the conditions for applying transaction value PP?
a) Yes.
b) No.

34. What is the customs value of imported machinery that equiped with operating control
software?
a) Value of machine and software
b) Value of the machine
c) Value of software

35. Identical imported goods must be exported to Vietnam on the same day or within how many
days compared to the export date of the imported goods being valued?
 a) 30
b) 60
c) 90

36. Identical imported goods must be exported to Vietnam on the same day or within 60 days
before or 60 days after which of the following dates compared to the imported goods being
valued?
a) The exportation date of imported goods is being determined
b) Importation date
c) Date of registration of the declaration
d) Contract signing date

37. The customs value of exported goods is the selling price at the export border gate, excluding:
a) International insurance premium
b) International shipping fee
c) Both of the above options are right
d) Both of the above options are wrong

38. Which agency has the authority to promulgate regulations on exploitation, construction,
management and operation of the customs value database?
a) Director General of the General Department of Customs
b) Minister of Finance
c) Prime Minister