The import and export enterprise shall truthfully declare the commodity classification code to the customs. If there is a dispute with the customs, it may choose a suitable solution channel to resolve the dispute. The taxpayer shall, in accordance with the law, truthfully declare the goods for import and export, and report to the customs truthfully, and bear the corresponding legal responsibility for the declared commodity code.

       From March to June 2007, Yuantong Company exported 10 tickets of steel products to Customs A. The declared product name was ferronickel and the export tax rate was 10%. A Customs found that there is a risk of classification in the monitoring. The correct product name of the commodity is “alloy pig iron”, the correct commodity code should be 7201500010, and the export tax rate is 20%. The company will be taxed. From July to November 2007, the company also declared 9 tickets of similar products at Customs B. During the reporting process, Yuantong Company provided real customs export contracts, invoices, and inspection reports of quality inspection agencies, but did not accept them. A Customs classification correction, the declared product name is ferronickel, the commodity code is 7202600000, and the export tax rate is 10%. B Customs found the company's illegal behavior, and in July 2008, the administrative punishment was imposed on Yuantong Company by false declaration.

       Yuantong Company refused to accept the decision of B Customs administrative punishment and applied for administrative reconsideration to the higher customs of Customs B. During the trial, the reconsideration agency learned that the steel products exported by Yuantong Company are commonly known as “nickel iron”, “nickel pig iron” and “nickel soldering iron” in the industry. They are made by using imported red earth nickel ore and using innovative technology. Its nickel content does not exceed 8%, and its export price is based on the price of ferrous iron per 1% of the London metal futures market. According to the relevant provisions of the "Import and Export Tariff of the People's Republic of China", the iron alloy of the tax item 7202 includes the name of ferronickel. The nickel content must exceed 10% in order to be classified according to ferronickel. The nickel content of Yuantong Company is not more than 8%. The steel products shall be classified as alloy pig iron under the tax item 7201. Yuantong Company was dissatisfied with the classification of goods after being corrected by A Customs. It had hoped that through the Iron and Steel Association and the Customs, it would change the classification of its products, which was unsuccessful. Afterwards, Yuantong Company still insisted on its own point of view, so it happened to report the wrong product name and commodity code to B Customs. B Customs took into account the intentional misrepresentation of the name and code of Yuantong Company, and more expressed the use of incorrect and inappropriate ways to express dissatisfaction with the classification of customs goods, rather than subjective intentions of tax evasion, and provided to the Customs The correct invoices and other related materials, so the intentional misreporting behavior is characterized as false declarations rather than smuggling.

       The reconsideration agency confirmed that the facts of the original administrative punishment were clear, the applicable basis was correct, the procedure was legal, the content was appropriate, and the decision was maintained. At the same time, the parties were informed of the correct way to resolve the administrative dispute.

       Legal tips

       When Yuantong Company refused to accept the classification of A customs goods, it did not take the correct way to express its appeals and resolve disputes. Instead, it used the method of replacing the customs declaration to circumvent the customs' correction of its commodity classification, which ultimately led to its own illegal consequences.

       Then, how should the relatives correctly understand the classification of customs goods? How to solve the problem when the customs goods are not convinced?

      Article 3 of the "Regulations on Import and Export Tariffs of the People's Republic of China" stipulates: "The State Council shall enact the "Import and Export Tariff of the People's Republic of China", which stipulates the tariff lines, tariff codes and tax rates of customs duties as part of these Regulations." The provisions of this article contain two meanings: one is to determine the legal status of the "Tax", which is the scope of the basic administrative regulations of the tariff system; the second is to stipulate the basic functions of the "Tax", that is, the tariffs and tariffs of the tariffs (ie Commodity code) and tax rate.

      Article 31 of the Customs Regulations also stipulates that: “Taxpayers shall declare in accordance with the provisions of the “Regulations” and the general rules of classification, class notes, chapter notes, sub-notes and other classification notes. The import and export goods are classified into commodities and classified into the corresponding tariff codes. "Article 6 of the "Administrative Measures on Customs Import and Export Goods of the People's Republic of China" clearly stipulates: "Taxpayers shall comply with laws, administrative regulations and customs. Regulations on the classification of commodities, the price of tax and the management of origin, the name of the goods for import and export goods, the tariff code (item number), specifications, price, transportation and other related expenses, origin, quantity Etc. The two clearly stipulate that the taxpayer should classify the goods for which the declared import and export goods are classified according to the relevant classification basis, and truthfully declare to the customs, and at the same time bear the legal responsibility for the declared commodity number (tax code number).

       In this case, the subtitles of Article 72 of the “Tax Code” clearly stipulate that: “The ferroalloys listed in the subheading under Tax No. 72.02 are classified. When applying this regulation, the provisions in Note 1 (III) of this Chapter are not The other elements listed must be more than 10% by weight in terms of weight, which means that the nickel iron under 72.02, the nickel content of the single element must exceed 10% of the total weight. Yuantong Company did not classify and declare according to this regulation, and should bear corresponding legal responsibilities.

        Resolution of categorization disputes

      As an administrative regulation, the "Tax Code" has its own general characteristics. It is impossible to describe each commodity in detail and list it one by one; and because the classification has distinct rules and professional characteristics, the import and export counterparts From the perspective of industry or technology, the one-sided understanding of the tax structure and catalogue regulations, in the actual practice of customs supervision, is likely to lead to disputes between the management counterparts and the customs. At this point, the taxpayer can use a variety of ways to express willingness and appeal, and seek to resolve the dispute. First of all, No. 51 of 2007, "Notice of the General Administration of Customs of the People's Republic of China" clearly stipulates the procedures for managing relatives to negotiate with the customs when they are not compliant with the classification of goods; secondly, the relatives of customs management may also classify certain commodities. Specific administrative actions directly file an administrative review.

       In addition, due to the continuous adjustment of the national tax policy, the State Council Taxation Committee has to make a new revision and adjustment of the “Tax Code” every year. The General Administration of Customs is also an important department involved in the revision of the “Tax Code”. Therefore, in addition to the above several ways of resolving disputes, the management counterparts should actively submit to the Customs through the industry associations, competent authorities, customs portals and other means to submit the commodity classification and the applicable tax rate, in order to facilitate the customs to grasp the market in a timely manner. Trends and related information provide a reference for the annual adjustment of the “Tax Code”.