Battery Import Procedures

1. Identifying the HS Code for Batteries

HS Code

The HS (Harmonized System) code is a standardized system for classifying goods when importing and exporting. Correctly identifying the HS code helps businesses apply the appropriate tariffs and comply with import regulations.

• Legal Regulation: According to Circular No. 65/2017/TT-BTC of the Ministry of Finance, the HS codes for various types of batteries are listed under Chapter 85 (Electrical machinery and equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, and parts and accessories of such articles).
• Examples of HS Codes:
  • HS Code 8507.10.00: Lead-acid batteries used for motorcycles and similar vehicles.
  • HS Code 8507.20.10: Lead-acid batteries used for cars and trucks.
  • HS Code 8507.90.00: Parts of batteries.

2. Checking Import Policies and Business Conditions

Import Policies

Batteries are considered conditional goods, meaning they must comply with environmental, chemical safety, and quality standards.

• Legal Regulation:
  • Decree No. 69/2018/ND-CP: On foreign trade management, batteries are listed as goods subject to conditional import.
  • Circular No. 03/2018/TT-BCT: On chemical management, specifies that batteries containing hazardous chemicals require special business licenses.

Business Conditions

Importing companies must have the appropriate business licenses, especially for batteries containing hazardous chemicals or those that may impact the environment.

• Legal Regulation: According to Circular No. 32/2017/TT-BCT, companies importing products containing hazardous substances (such as lead) must obtain licenses and certificates of business eligibility from the Ministry of Industry and Trade.

3. Preparing Customs Documents

Required Documents

Customs documents must be prepared accurately and in accordance with the regulations to ensure smooth importation.

• Customs Declaration Form: Use form HQ/2015-PMD as per Circular No. 39/2018/TT-BTC.
• Commercial Contract: Should clearly state the terms of delivery, pricing, and payment methods.
• Commercial Invoice: Reflects the value of the shipment, used for calculating import taxes.
• Packing List: Describes the packaging method, quantity, and weight of each package.
• Bill of Lading: Confirms the transportation of goods from the exporting country to Vietnam.
• Certificate of Origin (C/O): Certifies the origin of the goods, allowing for tax incentives if applicable.
• Certificate of Quality: Confirms that the product meets the quality standards as per the Ministry of Science and Technology’s regulations.

Customs Filing Process

• Legal Regulation: According to Circular No. 39/2018/TT-BTC of the Ministry of Finance, businesses must submit customs declarations and documents through the VNACCS/VCIS automated clearance system.
• Procedure: Documents are submitted to the Customs Department where the goods arrive. After verification and comparison, the customs authorities will issue clearance for the shipment.

4. Quality Inspection of Goods

Quality Inspection Registration

Imported batteries must undergo quality inspection before customs clearance to ensure they meet the technical standards.

• Legal Regulation: According to Circular No. 41/2018/TT-BGTVT of the Ministry of Transport, batteries must be inspected according to national standards (TCVN).
• Process:
  • The company registers for inspection at designated technical centers.
  • After inspection, the center will issue a Certificate of Quality (CQ) or notify if any standards are not met for the company to rectify.

Quality Standards

Imported batteries must meet standards for performance, durability, and environmental safety.

• Legal Regulation: According to Circular No. 22/2016/TT-BKHCN of the Ministry of Science and Technology, battery products must comply with TCVN 6789:2009 standards for lead-acid batteries.

5. Environmental Inspection Registration

Environmental License

Batteries contain chemical substances that may harm the environment, so environmental inspection and registration are required.

• Legal Regulation: According to Circular No. 12/2018/TT-BTNMT of the Ministry of Natural Resources and Environment, batteries are subject to environmental impact inspection.
• Environmental Documentation:
  • Environmental Impact Assessment Report (EIA).
  • Certificate of conformity according to Circular No. 23/2019/TT-BTNMT.
  • Documentation on waste management procedures and pollution reduction measures.

Registration Process

• Submission: At the Department of Natural Resources and Environment of the locality where the company is registered.
• Assessment: Authorities will assess the documentation, conduct site inspections if necessary, and issue a certificate if the requirements are met.

6. Paying Import Duty and Value-Added Tax (VAT)

Import Duty

Import duty on batteries depends on the HS code and the origin of the product.

• Legal Regulation: According to the Law on Export and Import Duties 2016 and Decree No. 57/2020/ND-CP, import duty rates for batteries range from 5% to 25%.
• Example: Lead-acid batteries under HS Code 8507.10.00 may be subject to a 20% import duty rate.

Value-Added Tax (VAT)

• Legal Regulation: According to the Law on Value-Added Tax 2008 and its guiding circulars, the VAT rate for imported batteries is 10%.
• Calculation: Import duty and VAT are calculated based on the customs value of the goods.

7. Customs Clearance Procedures

Clearance Process

After completing tax obligations and submitting all required documents, the company proceeds with customs clearance at the customs office.

• Process:
  • The company submits the documents at the Customs Sub-department.
  • The customs authority reviews and approves the documents.
  • Once cleared, the batteries are released for distribution.
• Legal Regulation: According to Circular No. 39/2018/TT-BTC, companies can conduct customs clearance through the VNACCS/VCIS system.

8. Transportation and Storage of Goods

Transportation and Storage

After customs clearance, batteries need to be transported and stored correctly to ensure safety and prevent environmental pollution.

• Legal Regulation: According to Decree No. 104/2017/ND-CP on the storage and transportation of dangerous goods, batteries must be transported and stored under safe conditions, away from heat sources, and with warning signs in place.
• Measures: Storage facilities for batteries should be equipped with ventilation systems, fire prevention, and explosion protection, and should have designated areas for handling chemical leaks.

9. Warranty and After-Sales Services

Warranty Policy

Imported batteries must come with warranty policies and after-sales services to ensure consumer rights.

• Legal Regulation: According to the Law on Consumer Protection 2010, importing companies must provide a minimum 12-month warranty for battery products.
• Requirement: A service center or representative in Vietnam must be available to handle warranty-related issues.

10. Compliance with Other Regulations

Environmental Protection Regulations

• Legal Regulation: According to Decree No. 40/2019/ND-CP on hazardous waste management, companies importing batteries must register with the Ministry of Natural Resources and Environment and implement environmental protection measures.

Consumer Protection Regulations

• Legal Regulation: The Law on Consumer Protection 2010 requires companies to provide clear information about products, usage instructions, and safety warnings to consumers.