Customs Clearance Process for Furniture Imports Conducted by IPO Logistics

1. Introduction to IPO Logistics

IPO Logistics is a leading company in Vietnam that provides logistics and customs clearance services. With a team of experienced professionals, IPO Logistics offers comprehensive import solutions to businesses, ensuring the customs clearance process is swift, accurate, and fully compliant with legal regulations.

2. Legal Basis Governing Furniture Imports

Furniture imports into Vietnam are governed by several important legal documents, which businesses must adhere to:

• Customs Law 2014: Regulates customs declarations and supervision.
• Decree No. 08/2015/ND-CP (amended by Decree No. 59/2018/ND-CP): Provides detailed guidance on customs procedures, helping businesses understand their rights and obligations during the import process.
• Circular No. 38/2015/TT-BTC (amended by Circular No. 39/2018/TT-BTC): Details the process of customs declarations, inspections, supervision, and tax handling in import-export activities.

These legal documents serve as the foundation to ensure the import and customs clearance procedures are conducted in accordance with the law.

3. Determining HS Codes for Furniture

Furniture consists of various items, each with a corresponding HS code used for customs declaration and tax calculation. Common HS codes for furniture include:

• 9401: Seats (except those of heading 9402).
• 9402: Medical, surgical, dental, or veterinary furniture.
• 9403: Other furniture (cabinets, shelves, tables, etc.).
• 9404: Wooden furniture (beds, mattresses, related items).
• 9405: Metal furniture (bed frames, chairs, etc.).

The HS code is crucial for calculating import duties and determining the necessary customs procedures. IPO Logistics assists businesses in accurately identifying the correct HS codes for each item.

4. Detailed Customs Clearance Process for Furniture Imports

4.1. Preparing Import Documents

Accurate and complete document preparation is critical to the success of the customs clearance process. The import documents include:

• Sales Contract: Agreement between the importer and supplier, detailing the product specifications, contract value, and delivery conditions according to Incoterms.
• Commercial Invoice: A document that provides details on the value, unit price, quantity, and total value of the goods.
• Packing List: Information on packaging methods, quantity, weight, and dimensions of each package.
• Bill of Lading (or Airway Bill): A vital document showing the transportation route, including departure and destination ports, and the type of transportation (sea, air, or road).
• Certificate of Origin (C/O): If the goods are eligible for preferential tax rates under free trade agreements (FTAs), a valid C/O must be provided.
• Quality Inspection Certificate (if required): Certain furniture items, especially children’s furniture or those made from special materials, may require quality and safety certification.

4.2. Electronic Customs Declaration

Electronic customs declaration is a mandatory step in the import process. IPO Logistics assists customers in declaring goods through the VNACCS/VCIS system. Key steps include:

• Entering the customs declaration: IPO Logistics inputs the relevant information about the shipment (HS code, product description, quantity, FOB/CIF value, delivery conditions, tax codes) into the VNACCS system.
• Verification: After entering the data, the system automatically classifies the customs inspection level:
  • Green Lane: Goods are exempt from physical inspection; the business only needs to submit documents for clearance.
  • Yellow Lane: Documents are reviewed before customs clearance.
  • Red Lane: Both documents and the actual goods are inspected.

IPO Logistics carefully checks all documents to ensure the customs declaration meets requirements, minimizing the risk of being classified under the red or yellow lane.

4.3. Payment of Import Duties and Value-Added Tax (VAT)

After the customs declaration, businesses must pay taxes to proceed with clearance. The two main taxes are import duties and VAT:

• Import duty: This tax rate depends on the HS code of each furniture item. Typically, the import duty for furniture ranges from 10-30%.
• Value-added tax (VAT): The current VAT rate for imported goods in Vietnam is 10%.

IPO Logistics assists in calculating the appropriate tax amounts and guides businesses on how to pay taxes via bank transfers or the customs e-payment system.

4.4. Customs Inspection and Goods Verification

If the shipment is classified under the red or yellow lane, customs will conduct an inspection of the documents and/or the actual goods. The inspection process includes:

• Document inspection: Customs officers will review the validity of documents such as the sales contract, commercial invoice, packing list, and certificate of origin.
• Physical goods inspection: For shipments in the red lane, customs will require a physical inspection of the goods at the port or bonded warehouse. The officers will compare the declared information with the actual goods to ensure accuracy.

IPO Logistics coordinates directly with customs to ensure the inspection process is completed quickly, avoiding extended storage times and unnecessary costs for businesses.

4.5. Customs Clearance and Receiving Goods

After completing the inspection and paying taxes, customs will issue a clearance permit for the shipment. The business can then proceed to receive the goods at the port or bonded warehouse.

IPO Logistics supports businesses with:

• Transporting goods from the port to the warehouse: Arranging appropriate transportation for the volume and size of the shipment.
• Delivery to the final destination: If required, IPO Logistics offers delivery services to the business’s warehouse or store.

4.6. Tracking and Monitoring the Transportation Process

One of the value-added services provided by IPO Logistics is shipment tracking throughout the entire process, from the export port to delivery to the customer. Businesses will receive continuous updates on the shipment status via IPO Logistics’ transportation management system.

5. Other Legal Considerations

5.1. Product Labeling Regulations

According to Decree 43/2017/ND-CP on product labeling, all imported goods into Vietnam must be properly labeled with the following information:

• Product name.
• Name and address of the manufacturer, importer.
• Country of origin.
• Material, size, and usage instructions (if applicable).

Businesses must ensure product labels comply with these regulations to avoid issues during the customs clearance process.

5.2. Intellectual Property Rights and Industrial Design

Imported products must comply with intellectual property and industrial design regulations. Importing goods that infringe intellectual property rights may lead to goods being seized or subject to penalties.

5.3. Quality Inspection of Goods

Certain furniture items, such as children’s beds or products made from special materials, may require quality inspection or safety testing. Adhering to these quality standards not only ensures smooth customs clearance but also protects consumer rights.

6. Conclusion

Furniture imports require careful preparation and strict compliance with legal regulations. Although the customs clearance process can be complex, with professional support from IPO Logistics, businesses can be confident that each step will be executed correctly, ensuring high accuracy and efficiency.

IPO Logistics is committed to assisting businesses in every aspect of the customs clearance and logistics process, from document preparation and customs declarations to transportation and delivery.

Customs Clearance Process for Furniture Imports