IMPORT PROCEDURES FOR AIR FRYERS

IMPORT PROCEDURES FOR AIR FRYERS CONDUCTED BY IPO LOGISTICS

Import procedures for air fryers into Vietnam requires compliance with customs, tax regulations, and ensuring that the products meet technical standards. IPO Logistics provides a comprehensive import service, ensuring a professional, transparent process that adheres to all legal requirements. Below is a detailed guide to the procedures, tax rates, and legal regulations involved in importing air fryers.

I. IDENTIFYING HS CODES AND IMPORT POLICIES

1.1. Identifying the HS Code

Air fryers are generally classified under HS Code 8516.79.90 (other household electrical appliances). This HS code determines the applicable import tax, VAT, and other customs policies.

Correct HS Code identification is crucial as it directly impacts the tax rate and import procedures. IPO Logistics will assist in researching and determining the correct HS code based on product details.

1.2. Import Policies

• Air fryers are not on the list of prohibited imports but are subject to quality inspection and energy efficiency testing as required by the Ministry of Industry and Trade.
• Businesses must prepare all necessary documents to complete inspections at relevant authorities during the customs clearance process.

II. CUSTOMS CLEARANCE PROCEDURES

2.1. Customs Documentation

IPO Logistics will assist businesses in preparing the necessary documents for customs clearance, including:

1. Customs declaration form (filed electronically through the VNACCS/VCIS system).
2. Commercial Invoice: Original or certified copy from the importer.
3. Packing List: Details of the quantity and type of goods.
4. Sales Contract: Between the exporter and importer.
5. Certificate of Origin (C/O): If available, to qualify for preferential tax rates (for countries with free trade agreements with Vietnam such as ASEAN, EU, CPTPP, etc.).
6. Bill of Lading (B/L): Provided by the shipping company, certifying that the goods have been dispatched.
7. Quality inspection certificate (if applicable): From relevant authorities after completing energy efficiency testing.

2.2. Customs Procedures

1. Opening the customs declaration: IPO Logistics assists businesses in registering the customs declaration through the VNACCS system.
2. Submitting the customs dossier: Submit the prepared documents to the customs office at the port of entry.
3. Goods inspection: Customs officials may inspect the goods and request additional documents to verify origin and authenticity.
4. Clearance: Once the goods are verified and approved, businesses will receive a clearance notification and can proceed to collect their goods.

III. APPLICABLE TAXES FOR IMPORTING

3.1. Import Duty

Import duty is calculated based on the HS code and the customs value of the goods. If the business holds a valid Certificate of Origin (C/O) from countries or regions with free trade agreements with Vietnam, they may qualify for preferential or zero import duties.

Formula for calculating import duty:

$$\text{Import duty}=\text{CIF value}\times \text{Import duty rate}$$

Where:

• CIF value: The cost of goods, including insurance and freight.
• Import duty rate: Based on the HS code and origin of the goods.

3.2. Value Added Tax (VAT)

Air fryers are subject to a 10% VAT. The formula for calculating VAT is as follows:

$$\text{VAT}=(\text{CIF value}+\text{Import duty})\times 10\%$$

For example, if the CIF value of the air fryer is 1,000 USD and the import duty is 20%, the VAT will be:

• Import duty = 1,000 USD × 20% = 200 USD.
• VAT = (1,000 USD + 200 USD) × 10% = 120 USD.
• Total tax payable = 200 USD + 120 USD = 320 USD.

3.3. Other Fees

• Customs fees: These are administrative fees incurred during customs procedures, usually small but should be anticipated by the business.
• Quality and energy efficiency testing fees: For electronic appliances like air fryers, mandatory energy efficiency testing is required as per regulations by the Ministry of Industry and Trade. Testing costs will be borne by the importer.

IV. LEGAL REGULATIONS RELATED TO IMPORTING

4.1. Law on Export and Import Taxes (2016)

• This law provides regulations on applicable tax rates, preferential tariffs, and cases of tax exemption and reduction for exported and imported goods.

4.2. Circular 39/2018/TT-BTC

• Provides detailed guidelines for determining customs value and how to calculate import duties for imported goods.

4.3. Decree 18/2021/ND-CP

• Regulates cases of tax exemption and reduction for goods imported for manufacturing, processing, or export purposes.

4.4. Circular 83/2014/TT-BTC

• Provides guidelines on applying preferential import duties according to free trade agreements that Vietnam has signed.

V. SUPPORT FROM IPO LOGISTICS

IPO Logistics offers a full-service import package with a professional and efficient process, including:

• HS Code Consultation: Assisting businesses in determining the correct HS code to ensure accurate tax rates and procedures.
• Customs documentation preparation: Ensuring complete and accurate documentation in compliance with legal regulations.
• Customs clearance procedures: Resolving any issues related to customs, ensuring a smooth and timely clearance process.
• Optimizing import duties: Advising and assisting in applying for tax exemptions or preferential rates to minimize import costs.

With IPO Logistics’ professional services, businesses can be confident that the air fryer import process will be fully compliant with legal requirements while optimizing costs.