Customs Procedures for Human Hair Products

Import Process and Customs Procedures for Human Hair Products by IpoLogistics

Customs Procedures for Human Hair Products – In today’s globalized economy, import activities play a crucial role for businesses in Vietnam, especially those in industries that require materials or products from abroad. Among these, human hair products are widely imported into Vietnam for manufacturing wigs, dyeing, beauty, medical use, and related products. To ensure a smooth and legal import process, businesses must follow the proper customs procedures, comply with the state’s tax policies, and fulfill the legal requirements. IpoLogistics, with over 10 years of experience in logistics and customs procedures, is committed to providing fast, effective, and legal importation and clearance services.

This article will detail the import process for human hair products, customs procedures, HS Codes, taxes, and legal policies to follow.

I. Overview of the Human Hair Products Import Process

The process of importing human hair products involves several stages, from determining the HS Code, preparing documentation, customs declaration, tax payment, to clearance and receiving the goods. Each step requires thorough preparation to avoid mistakes or violations that could delay the process and increase costs.

1. Determining the HS Code for Human Hair Products

The HS Code (Harmonized System Code) is an international classification system used by customs authorities to categorize products and apply the appropriate tariffs. The HS Code for human hair products is extremely important as it directly affects the applicable customs duties, VAT, and quality control policies.

HS Code for human hair products:

• HS Code 6703.00: Human hair, unprocessed or minimally processed, untreated or simply processed.
• HS Code 6703.00.00: Human hair used for manufacturing wigs or for use in the hair industry.

Determining the correct HS Code is the first and most critical step to ensure the customs process is quick and accurate.

2. Importance of the HS Code

• Accurate tariff determination: Each HS Code corresponds to a different import duty rate. Incorrectly identifying the HS Code could result in higher duties or unnecessary costs.
• Ensuring legal compliance: Incorrect HS Codes could lead to violations of customs regulations, resulting in fines or a need for additional checks on the goods, delaying the process.
• Supports customs processing: Accurate HS Codes help customs authorities process clearance faster.

II. Relevant Government Policies and Regulations

Importing human hair products into Vietnam must adhere to various national regulations. These include the Customs Law, Decrees, Circulars, and tax policies.

1. Vietnamese Customs Law

The Customs Law No. 54/2014/QH13 provides the framework for customs procedures, outlining the rights and duties of businesses and individuals in import-export activities. According to this law, all imported goods, including human hair products, must undergo customs declaration, pay import duties, VAT, and follow quality and safety checks.

2. Decrees and Circulars

• Decree No. 69/2018/ND-CP regulates the control and supervision of imported goods. Under this decree, certain products, including those potentially affecting public health, such as human hair products, may be subject to stricter inspection.
• Circular No. 38/2015/TT-BTC and Circular No. 39/2018/TT-BTC provide detailed guidelines for customs procedures, covering the declaration process, tax payment methods, and required documentation for imports.

3. Tax Policies and Preferential Tariffs

Human hair products imported into Vietnam are subject to import duties and VAT. However, if the products come from countries that have signed Free Trade Agreements (FTAs) with Vietnam, businesses may benefit from reduced or exempted import duties by presenting the Certificate of Origin (C/O).

• Import Duty: Import duties on human hair products typically range from 0% to 20%, depending on the HS Code and any FTA benefits.
• VAT: The VAT for imported goods in Vietnam is 10%.

III. The Import Process for Human Hair Products

1. Preparing Import Documentation

Before proceeding with customs procedures, businesses need to prepare the following documents:

• Commercial Invoice: Contains detailed information about the exporter, importer, product description, quantity, and value.
• Packing List: Specifies the quantity, weight, and size of each shipment.
• Bill of Lading: The shipping document showing proof of transportation from the export port to the import port.
• Certificate of Origin (C/O): Issued when businesses want to benefit from preferential tariffs under FTAs.
• Import License (if required): Some products, like human hair, may require specific import permits from authorities.
• Quality or Safety Certification: Necessary for human hair products, especially if they might impact public health.

2. Choosing the Shipping Method

The choice of shipping method will affect both the cost and delivery time. IpoLogistics offers several shipping options, such as:

• Sea Freight: Cost-effective for large shipments but with longer delivery times.
• Air Freight: Suitable for smaller shipments that require faster delivery but at a higher cost.
• Road Transport: Used for imports from neighboring countries or regions.

3. Customs Declaration and Procedures

Once the goods arrive at the import port, the next step is customs declaration and completing the required formalities:

• Customs Declaration: The importer will submit details of the goods via the VNACCS/VCIS system, including HS Code, product value, Bill of Lading, and other necessary documents.
• Paying Import Duties and VAT: The importer is required to pay the applicable import duties and VAT according to the regulations.
• Goods Inspection: Customs may request an inspection of the goods to ensure they comply with quality and safety regulations.

4. Tax Payment and Completion of Clearance

After completing the customs procedures and paying taxes, the customs authority will issue a Customs Clearance Certificate. The goods will then be ready for delivery to the importer or stored in a warehouse for further handling.

IV. Tariffs and Associated Fees

1. Import Duty

Import duties are compulsory taxes applied to all goods entering Vietnam. These rates typically range from 0% to 20%, depending on the origin of the product and the applicable HS Code.

2. VAT

VAT on imported goods in Vietnam is 10%. This tax is calculated on the total value of the goods, including the import duty and any other fees.

3. Example of Tax Calculation

Suppose a shipment of human hair products has a CIF value of USD 10,000, the import duty is 5%, and the VAT is 10%:

• Import Duty: $10,000\times 5\%=500\text{USD}$
• VAT: $(10,000+500)\times 10\%=1,050\text{USD}$
• Total Tax Payable: 1,550 USD.

V. Conclusion

The import process and customs procedures for human hair products are complex and require careful preparation and strict adherence to government regulations. IpoLogistics is committed to supporting businesses throughout the entire import process, ensuring that goods are cleared smoothly, legally, and cost-effectively, while minimizing risks and delays.