import procedures for essential oil diffusers

import procedures for essential oil diffusers, along with the relevant legal regulations for businesses to easily reference:

1. Determine HS Code and Product Policies

• HS Code is crucial for determining tax policies and other import requirements. Essential oil diffusers typically have the HS Code 8509.80.90, classified under “other household electrical appliances.”
• Relevant legal documents:
  • Circular 14/2015/TT-BTC dated January 30, 2015, by the Ministry of Finance, guiding the classification of goods.
  • List of Vietnam’s exported and imported goods in Decision 24/2017/QD-TTg.
• Product policy check:
  • Verify whether the essential oil diffuser falls under the list of goods requiring state quality inspection per Decision 3810/QD-BKHCN.

2. Prepare import licenses and register a tax code

• Tax code registration: The importing company must have a registered tax code with the customs authority, usually the company’s tax identification number (TIN).
  • Legal basis: Law on Tax Administration No. 38/2019/QH14, Decree 126/2020/ND-CP.
• Import license:
  • For essential oil diffusers with electronic or wireless functions, check if a radio frequency safety inspection certificate is required, as per Circular 36/2015/TT-BTTTT.

3. Prepare import documents

The complete set of import documents for essential oil diffusers includes:

• Commercial contract (Sales Contract): Regulated under Vietnam’s Commercial Law 2005.
• Commercial invoice: Stipulated in Article 24 of Circular 38/2015/TT-BTC on customs declarations for goods.
• Packing list: Required under customs regulations, as guided in Article 24 of Circular 38/2015/TT-BTC.
• Bill of lading: A transport document governed by the Vietnam Maritime Code 2015.
• Certificate of origin (C/O): Required if the importer seeks preferential import tax under Free Trade Agreements (FTA), according to Decree 31/2018/ND-CP.

4. Customs declaration

• Customs declaration is done through the VNACCS/VCIS system, with the customs declaration form and related documents.
  • Legal basis: Circular 39/2018/TT-BTC, amending Circular 38/2015/TT-BTC guiding customs procedures, customs inspection, and supervision.
• When declaring, the company must provide information such as HS code, value of goods, and other relevant factors. The system will automatically classify the goods into different inspection channels (green, yellow, red).

5. Product quality inspection and conformity certification

• If essential oil diffusers are on the list of goods requiring quality inspection (based on Decision 3810/QD-BKHCN), they must be certified for conformity under relevant standards.
  • Conformity certification for electronic devices is required by the Ministry of Science and Technology under Circular 28/2012/TT-BKHCN.
  • For electrical equipment, conformity certification may be required under the national technical regulation QCVN 4:2009/BKHCN on the safety of household appliances and similar equipment.
• Additionally, the business must check for standards related to electrical safety and fire safety (if applicable).

6. Pay import duties and VAT

• Import duty:
  • The import duty rate for essential oil diffusers varies based on the HS code and C/O (if FTA preferential rates apply). Without a C/O, the general import duty rate is 20%.
  • Legal basis: Decision on the Preferential Import Tariff under Free Trade Agreements and Circular 182/2015/TT-BTC.
• Value-added tax (VAT):
  • Essential oil diffusers are generally subject to 10% VAT as stipulated by Law on VAT 2008, amended by Law No. 31/2013/QH13.

7. Customs clearance and receiving goods

• Once all duties and financial obligations are completed, the business will be allowed to release the goods from the port. The logistics company will assist in receiving and transporting the goods to the warehouse.

8. Comparison between self-handling and hiring a professional logistics company

• Self-handling: The business must handle every step of the process, from customs declaration to tax payment and quality inspection. While this approach may reduce logistics service costs, it poses the risk of legal complications due to a lack of experience.
• Hiring a logistics company:
  • A professional logistics company, such as iPologistisc, ensures that the import process is fully compliant with legal regulations.
  • The logistics company will handle complex procedures on behalf of the business, assist in goods inspection, customs declaration, and transportation. This helps the business save time and avoid risks related to legal and procedural issues.
  • These companies are also capable of quickly resolving issues such as red channel inspections or quality inspections.

Conclusion

The import procedures for essential oil diffusers require detailed knowledge of legal processes, from customs declarations to required import documents. Businesses must thoroughly prepare documents and comply with government regulations to ensure smooth customs clearance.