Import Procedures for Shellac Resin

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Detailed Guide on Import Procedures for Shellac Resin (Shellac Resin) for Enterprises

Shellac resin is a natural resin extracted from the secretions of the Lac insect, and it has a wide range of applications in the food, pharmaceutical, cosmetic, and paint industries. For businesses that are importing this product for the first time, navigating the import process can be quite challenging due to legal regulations, customs requirements, and complex procedures. From the perspective of a logistics company with years of experience, Ipo Logistics will provide a detailed and comprehensive guide on the import procedures for shellac resin, helping clients understand the necessary steps and prepare the required documentation for a smooth import process that complies with Vietnamese regulations.

1. Introduction to Shellac Resin (Shellac Resin)

Shellac resin, also known as Shellac Resin, is a natural resin extracted from the Lac insect’s secretion. Shellac resin has outstanding properties such as anti-fungal, anti-bacterial, and is easily used to create a glossy coating. Due to these properties, shellac resin is used in various industries, including:

  • Food Industry: Used as a coating for candy, biscuits, and dried fruits.
  • Pharmaceutical Industry: Used in the production of pills, especially capsule shells.
  • Cosmetic Industry: A key ingredient in products like lipstick, nail polish.
  • Paint Industry: Used in the production of paints and varnishes for wood and metal.

2. Import Procedures for Shellac Resin (Shellac Resin)

To import shellac resin into Vietnam, you need to follow a series of important steps, from preparing the necessary documents to completing customs procedures and fulfilling tax obligations. Below are the detailed steps in the import process that businesses need to understand.

Step 1: Determine the HS Code

HS Code (Harmonized System Code) is a key factor that determines the tax rate, customs requirements, and legal regulations related to the imported product. For shellac resin, the applicable HS Code is usually:

  • HS Code: 1301.90.90 – Other natural resins (Natural resins, gums, other than specified).

This HS Code will be the basis for customs to calculate the import tax, value-added tax (VAT), and other requirements for the product.

Step 2: Check Legal Regulations and Related Policies

Before proceeding with the import of shellac resin, businesses need to understand the legal regulations and government policies related to this product. Some important points to note include:

  • Import policy: Shellac resin is not on the list of prohibited imports in Vietnam. However, since this product is derived from natural sources (plants and insects), certain products may require plant quarantine before customs clearance.
  • Certificate of Origin (C/O): This is an important document that certifies the origin of the product. If the product is imported from countries with Free Trade Agreements (FTAs) with Vietnam, providing the Certificate of Origin will help businesses benefit from tax incentives.
  • Plant Quarantine (if necessary): Since shellac resin originates from plants and insects, you may need to prepare a plant quarantine certificate. This certificate ensures that the product does not carry any diseases or harmful pests that could pose a threat to agriculture or public health.

Step 3: Prepare the Import Documents

A complete and accurate set of import documents is essential for ensuring smooth customs clearance. The basic documents required for shellac resin import include:

  1. Trade Contract (Contract): An agreement between the buyer and the seller specifying terms such as price, payment method, and delivery conditions.
  2. Commercial Invoice (Invoice): Contains information on transaction value, unit price, quantity of goods, and payment terms.
  3. Packing List: Details the packaging, number of packages, dimensions, and weight of each package.
  4. Bill of Lading: A transportation document issued by the carrier confirming the delivery of goods.
  5. Certificate of Origin (C/O): Certifies the product’s origin and is especially important for benefiting from tax incentives.
  6. Plant Quarantine Certificate (if required): If the shellac resin has a plant origin, this certificate ensures the product is disease-free and safe for import.

Step 4: Customs Declaration and Clearance Procedures

Once you have prepared the necessary documents, the next step is to file a customs declaration and go through the customs clearance process. The key steps in customs declaration include:

  1. Customs Declaration: The business submits information regarding HS Code, transaction value, quantity, and supplier information through the VNACCS system (Vietnam Automated Customs Clearance System).
  2. Physical Inspection of Goods: If the goods are flagged for inspection (via the “red lane”), customs will conduct a physical inspection. However, if the declaration is accurate and complete, the inspection rate is typically low.
  3. Paying Import Tax and VAT: Based on the declaration. Customs will calculate the import tax and VAT (10%) for the shellac resin. Import tax rates typically range from 5% to 10% depending on the HS Code and other factors.

Step 5: Transportation and Delivery of Goods

After customs clearance is complete, the goods will be transported to the business’s warehouse or distribution point. Ipo Logistics will assist with the transportation, warehousing, and delivery of goods quickly and safely.

3. Legal and Government Policies Related to Shellac Resin

3.1. Vietnam’s Customs Law

The Customs Law No. 54/2014/QH13, effective from 2015, regulates customs procedures, inspections, and tax obligations for import and export goods. This includes proper HS Code declarations, applicable tax rates, and tax obligations.

3.2. Relevant Decrees and Circulars

  • Decree No. 69/2018/ND-CP: Regulations on customs management and inspection of import and export goods, including natural products such as shellac resin.
  • Circular No. 38/2015/TT-BTC: Guidelines for customs procedures, the customs declaration process, and import taxes on goods.
  • Circular No. 39/2018/TT-BTC: Detailed instructions on how to calculate taxes on imported goods.

3.3. Plant Quarantine Regulations

Since products derived from plants, such as shellac resin. Need to comply with plant quarantine regulations, businesses must be aware of these procedures to ensure that their imported goods are safe for entry into Vietnam.

  • Circular No. 15/2018/TT-BNNPTNT: Provides detailed guidelines on plant quarantine for products of plant origin and the necessary checks to ensure the safety of imported products.

4. The Role of Ipo Logistics in the Shellac Resin Import Process

With over 10 years of experience in logistics and customs. Ipo Logistics commits to supporting businesses in importing shellac resin quickly, efficiently, and in compliance with legal regulations. Here are the services Ipo Logistics offers:

  • Legal and customs procedure consulting: We help businesses understand the tax regulations, quarantine requirements, and import documentation.
  • Customs declaration services: We assist with accurate and fast customs declarations, minimizing the risk of penalties.
  • Goods transportation and delivery: Our services include quick transportation of goods from the port to your warehouse or distribution point.
  • Problem-solving for issues: If any issues arise during customs clearance or inspection. Ipo Logistics will assist in resolving them quickly and efficiently.

Conclusion

The process of importing shellac resin into Vietnam may pose challenges for businesses unfamiliar with customs procedures and legal requirements. However, with the professional support from Ipo Logistics, businesses can confidently navigate the import process, ensuring compliance with regulations and avoiding delays. Contact Ipo Logistics today for expert advice and assistance in efficiently importing shellac resin to your business.

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