Enterprises importing goods into Vietnam for many different purposes such as trading, creating fixed assets, implementing investment projects… and corresponding to each import purpose, the customs declaration, import tax calculation will also be different. This article will provide you with general information and some notes for importing goods into Vietnam.
Generally, importing goods into Vietnam includes the following steps:
Step 1: Determine the import type of the goods
Each goods group has a different import mechanism. Therefore, enterprises need to determine the right type of goods in order to properly and fully carry out relevant procedures before/during import. Enterprises also need to carefully consider whether goods fall into the following groups:
Step 2: Determine the HS code
HS code is the classification code of the goods, which is the basis for determining the import and export tax rates of goods.
In case your Company did not sure about the HS code of the goods the Company intends to import, the Company can send a request for pre-determination of the HS code to the Vietnam Customs to ensure the accuracy of the HS code, to avoid the goods not be granted customs clearance or violate tax obligations.
Step 3: Determine the related taxes and fees
After correctly identifying the HS code of the goods. Businesses need to determine which taxes that their goods will be subject to, and how much the tax rate will be. Depending on the type of goods imported, businesses may be subject to one or more of the following taxes:
Step 4: Register/ apply for permission
To register/ apply for a license to import goods, you should process the following task:
Step 5: Declare customs declarations, pay taxes, customs clearance
The customs declaration can be submitted before the date the goods arrive at the border gate or within 30 days from the date the goods arrive at the border gate.
After the customs declaration is transmitted to the VNACCS System, the system will automatically classify:
After this process, the Company proceeds to pay taxes, related fees and customs clearance of goods.
Corresponding to each import purpose, the customs declaration and import tax calculation will also be different. Besides, in the spirit of the import and export regulations, enterprises must be solely liable for the declaration content, including the case that the declaration is made by the service providers. Because in reality, the Enterprise is the owner of the goods.
Therefore, even when importing goods through a third party, enterprises also need to control the contents related to its import in order to eliminate the risks that as the owner of the goods, enterprises will have to bear.
Some mistakes often occur during the customs declaration stage:
Enterprises when having demand to import need:
Wrong declaration, or understatement will often lead to the lack of tax payable and invisibly, the enterprise will be listed as the violated enterprises, the importing process will often be transferred to the gold channel afterward (checking the application and proof), or red channel (inspection of actual goods). For some temporarily imported machinery and equipment, when there is no need to use and re-export, domestic consumption will face many difficulties because the initial import dossier has applied HS code, tax calculation, type of import and export, import mechanism is not true to reality. Therefore, businesses also need to understand and keep in mind the information about import, because this will help them control the import process, including the results of work done by third parties.
The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.