THE PROCESS OF IMPORTING GOODS INTO VIETNAM IN 2023

Currently, import-export activities in Vietnam are increasingly developing and making great progress. Vietnam is a potential market with high consumption demand, many import businesses have been established, serving as an important trade bridge, contributing to promoting the national economy. So what is the process of importing goods? Find out with OTIS LAWYERS in the article below!

Currently, to import goods into Vietnam, businesses need to follow the following process:

Step 1. Preparation for import

Determine the import category of goods

Before importing goods, the importer must determine what type of goods their goods belong to in order to properly and fully carry out the procedures for importing those goods because not all types of goods can be imported into Vietnam, and not all goods apply the same import mechanism. Therefore, importers need to carefully consider whether the goods fall into one of the following categories:

(i) Goods banned from import: Some goods are not allowed to be imported into Vietnam, such as weapons, drugs, hazardous chemicals, some used goods... List of goods Prohibited import into Vietnam is detailed in Appendix I - Decree 69/2018/ND-CP.

(ii) Goods subject to a specialized inspection permit: Before importing goods into Vietnam, traders need to determine whether their goods are subject to a specialized inspection permit or not. Are not. Goods subject to specialized inspection will have to be registered in advance with relevant authorities to be inspected upon arrival at the port and issued with a standard certificate before being allowed to circulate in the Vietnamese market.

(iii) Goods must have an Import License, under the following conditions:

- For some types of products, importers must apply for an import license from or meet the conditions prescribed by the relevant ministries and branches.

- Regarding import licenses, depending on the type of goods, they may be subject to automatic or non-automatic import licenses.

- For products imported under conditions, the imported product must fully meet the conditions for that product but the importing enterprise does not need to apply for an import license. The list of products imported under licenses and conditions under the management of the Ministries is detailed in Appendix III - Decree 69/2018/ND-CP

Register/Apply for license

- Individuals cannot directly import goods but must be a legal entity with a registered business establishment to be able to import. Business registration can be done online at the National Business Registration Portal.

- Register to use digital signature at the website of the General Department of Customs:

Note: Digital signatures must be registered in advance at a digital signature service provider licensed by the Ministry of Information and Communications. After having a Digital Signature, the enterprise registers to use that Digital Signature for electronic customs declaration at the website of the General Department of Customs.

- Register to use the Vietnam Automatic Customs Clearance System (VNACCS): Customs declaration is done through the VNACCS System. To be able to use this system, customs declaration must register to use the website of the General Department of Customs.

After having an account, customs declarants download and install terminal software to perform electronic customs declaration. Currently, there are two types of terminal software for businesses to choose from: free software provided by the General Department of Customs, and software from IT companies approved to provide by the General Department of Customs.

- Register for specialized inspection for goods subject to specialized inspection at relevant agencies under the relevant ministries.

- Apply for import licenses at Ministries and ministerial-level agencies with licensing authority in cases where products are imported under license.

Step 2. Determine goods classification

Harmonized System (HS) for a good is a very important step in determining the tariff applicable to that good. According to the World Customs Organization (WCO), countries will uniformly impose the first 6 numbers of an HS code. However, the implementation of subsequent numbers in the HS code range is at the sole discretion of each country, so these numbers may vary between countries.

Step 3. Determine the taxes and fees payable

- Import tax: After determining the classification of goods according to Vietnam's HS system, the importer can know the import tax rate applied to those goods. Importers will base on the specific conditions of the goods to choose the most appropriate and beneficial tariff for themselves. Specifically:

(i) MFN tax: This is the tax rate that Vietnam applies to goods coming from WTO member countries and must comply with Vietnam's WTO commitments.

(ii) EVFTA tax: This is Vietnam's preferential tax rate for goods from EU countries. The preferential tax rate will be decided by Vietnam but cannot be lower than the level committed in the EVFTA.

Currently, Vietnam has issued Decree 111/2020/ND-CP on Special Preferential Import and Export Tariffs to implement the EVFTA Agreement for the period 2020 - 2022.

- Value added tax: Most imported products are subject to value added tax (except for some special goods). The value added tax rate is usually 10%, a few goods are only subject to a 5% tax rate. However, if the imported product is used as an input for the production of another type of goods, that value-added tax amount will later be deducted from the tax refund.

- Special consumption tax: Some imported goods are subject to special consumption tax such as alcohol, cigarettes, cars... Special consumption tax rates vary depending on the type of goods applied.

- Environmental protection tax: This is a tax applied to products that when used will cause negative impacts on the environment such as gasoline, coal, pesticides, etc.

- Anti-dumping tax, anti-subsidy tax and self-defense tax: Some imported goods are investigated by Vietnam and imposed anti-dumping, anti-subsidy or self-defense taxes, so they will be subject to these additional taxes. when imported into Vietnam.

Step 4. Fill out and transmit customs declarations, pay taxes, and clear customs

Customs declaration

Customs declaration can be prepared in advance by pre-filling information on the electronic customs declaration software. Customs declarations 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 to the VNACCS System. After the customs declaration is transmitted. The system will automatically distribute:

- Green channel: If the VNACCS System responds to the Green channel, the importer is exempt from detailed inspection of documents and goods.

- Yellow channel: If the system sends a Yellow channel response, the importer must submit the following paper documents for Customs inspection:

+ Bill of lading;

+ Packaging slip;

+ Value declaration;

+ Invoice;

+ Import license (in cases where goods are required to have an import license);

+ Notice of exemption from inspection or Notice of inspection results from a specialized inspection agency (for cases where goods are subject to specialized inspection);

+ EVFTA Certificate of Origin (for goods that want to enjoy EVFTA tariff incentives).

- Red channel: If the system responds to Red channel, the importer will have to submit documents as in the case of Yellow channel and the Customs agency will conduct a physical inspection of the goods in this case.

Pay taxes

Importers must pay all relevant taxes and fees to obtain customs clearance and release of goods.

For any questions or comments, please contact:

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