Customs Procedures for Importing Beans

Import Process and Customs Procedures for Importing Beans by iPoLogistics

Customs Procedures for Importing Beans – iPoLogistics is one of the leading companies providing comprehensive logistics solutions in Vietnam, specializing in international transportation, customs declaration, warehousing, distribution, and other logistics services. With a team of experienced professionals and in-depth understanding of legal regulations, iPoLogistics commits to supporting customers in carrying out import procedures quickly, accurately, and cost-effectively.

One of the most common goods that iPoLogistics frequently imports is various types of beans (soybeans, black beans, green beans, peanuts). Importing these products requires a clear understanding of applicable tariffs, necessary documents, and related customs procedures.

1. Determining HS Code for Beans

HS Code (Harmonized System Code) is an international classification system used to categorize goods in international trade transactions. Identifying the correct HS code for a product not only helps determine the applicable import tax rates but also affects the procedures for quality control, quarantine, and documentation requirements. Each type of bean has its own HS code, which is categorized under specific groups in the Vietnam Import-Export Tariff.

Common HS Codes for Beans:

• Soybeans: The HS code for soybeans is 1201.90. Soybeans are primarily imported into Vietnam for livestock feed, oil extraction, or use in the food industry.
• Black Beans: Black beans, with HS code 0713.10, are mainly used in food processing, such as black bean soup or other processed food products.
• Green Beans: The HS code for green beans is 0713.20, which are used in traditional dishes or food processing.
• Peanuts: The HS code for peanuts is 1202.10. Peanuts are primarily processed into peanut oil, peanut butter, or other food products.

Correctly classifying the HS code is essential for companies to easily declare customs, calculate import duties, and process other related procedures.

2. Duties and Fees When Importing Beans

One of the critical factors that import companies need to understand when performing customs procedures is the applicable taxes and fees for importing beans into Vietnam. These taxes not only impact the import cost but also influence the legal clearance of goods.

Applicable Duties and Fees:

• Import Duty: Import duty is the tax applied when goods are imported into Vietnam. The duty rate depends on the HS code, country of export, and the trade agreements Vietnam has with those countries. For example:
  • Soybeans (HS Code 1201.90) may be exempt from duty or subject to a 5% import tax depending on the provisions of free trade agreements (FTAs).
  • Black beans (HS Code 0713.10) may have an import duty rate ranging from 0% to 5%, depending on the country of origin and current policy.
  • Peanuts (HS Code 1202.10) and other beans may be exempt from import duty if they are covered by preferential trade agreements.
• Value Added Tax (VAT): The VAT for imported beans is 5% under Vietnam’s tax regulations for agricultural products, including various beans. However, some processed products like soybean oil or peanut butter may be subject to higher VAT rates.
• Special Consumption Tax: Processed products made from beans, such as peanut oil or peanut butter, may be subject to special consumption tax, although raw beans are typically not subject to this tax.
• Customs Fees: In addition to the import duties, businesses must pay customs-related fees, including:
  • Customs declaration fees.
  • Inspection fees (if applicable).
  • Certificate of Origin fees (if required).
• Storage Fees: In case of delays in customs clearance, businesses will need to pay storage fees at the customs warehouse or port storage.

3. Steps in the Importing and Customs Procedure for Beans

The import and customs procedure for beans includes several steps, from preparing documents, customs declaration, quality control, and final clearance. iPoLogistics follows a detailed process to ensure the efficient import of beans in compliance with Vietnamese laws.

Step 1: Preparing Import Documentation

Before proceeding with customs procedures, the importer must prepare all necessary documents. These essential documents include:

• Purchase Contract: A contract confirming the terms of trade between the seller and buyer (including value, quantity, and delivery conditions).
• Commercial Invoice: Provides detailed information about the beans (value, quantity, payment terms, etc.).
• Packing List: Lists the details of packaging, dimensions, weight, and quantity of each shipment.
• Bill of Lading: Confirms ownership of the goods and serves as a transport document issued by the carrier.
• Certificate of Origin: Verifies the origin of the goods, especially if the product qualifies for tariff preferences under trade agreements.
• Phytosanitary Certificate: If required, a certificate proving that the beans are free of pests and diseases.

Step 2: Customs Declaration

Once the documents are prepared, the company will proceed with electronic customs declaration through the VNACCS system (Vietnam Automated Customs Clearance System). This process includes the following steps:

• Login to the VNACCS system: The business logs into the electronic customs declaration system with its registered account.
• Enter product information: Input detailed information about the goods (HS code, quantity, value, applicable duties, related documents).
• Submit the declaration: After entering the information, the business submits the customs declaration for review by customs authorities.

Step 3: Quality Control of Goods

For beans, customs authorities will coordinate with relevant agencies to inspect the quality of the goods. If the goods are food-related, they must comply with food safety standards and be free of pesticide residues or harmful microorganisms.

• Phytosanitary Inspection: If required, the imported beans undergo phytosanitary inspection to ensure they are free of harmful diseases or pests.
• Quality Certification: Beans must have quality certification from competent authorities in the exporting country (e.g., the Ministry of Agriculture and Rural Development in Vietnam).

Step 4: Paying Taxes and Fees

Once the customs authority clears the documents, the company must pay all relevant taxes and fees. These taxes include import duties, VAT, customs fees, inspection fees (if applicable), and any other charges related to customs clearance.

Step 5: Customs Clearance and Delivery

After payment is made, customs will issue a Customs Clearance Certificate, and the goods will be released from customs storage. The imported beans are then delivered from the port or customs warehouse to the importer’s warehouse or directly to the distributor.

4. Key Considerations When Importing Beans

When importing beans, businesses should pay attention to several key points to ensure smooth and compliant importation:

• Compliance with Quarantine Regulations: Beans must meet phytosanitary regulations. Failure to provide a phytosanitary certificate can result in the goods being rejected by customs.
• Ensuring Proper Origin Documentation: To benefit from preferential tariffs, businesses must provide valid certificates of origin proving the goods’ origin.
• Monitoring Changes in Tariffs and Trade Agreements: Import duties and tariff preferences may change based on free trade agreements (FTAs). So businesses need to stay updated on these changes.

Conclusion

The import process and customs procedures for beans conducted by iPoLogistics are meticulously structured and compliant with Vietnamese regulations. From determining the correct HS Code and calculating applicable duties to carrying out customs procedures and quality control, all steps are executed thoroughly to ensure smooth customs clearance. iPoLogistics is committed to providing high-quality logistics services, optimizing costs, and ensuring timely delivery, helping businesses grow in a competitive market.