IMPORTING BIOPLASTICS

IMPORTING BIOPLASTICS FROM IPOLOGISTICS

 

IPOLOGISTICS is excited to accompany your company in the process of understanding and carrying out the importation of bioplastics. With many years of experience in international logistics and import-export, we provide in-depth consulting services regarding all aspects related to importing bioplastics, including customs procedures, legal regulations, tax policies, and trade advantages.

Bioplastics, made from plant-based materials, are increasingly becoming a global trend due to their environmentally friendly features, such as biodegradability. However, importing these products into Vietnam requires compliance with a range of legal regulations and customs procedures. Below, we provide a detailed guide to help your business understand the entire process and prepare thoroughly before starting the importation of bioplastics.

1. WHAT ARE BIOPLASTICS?

Bioplastics are plastics derived from renewable plant sources, as opposed to traditional plastics made from petroleum-based products. These bioplastics can be made from materials such as:

• Corn starch
• Sugarcane
• Palm oil and other vegetable oils

Bioplastics are known for their biodegradability, which helps reduce the negative environmental impacts associated with conventional plastics. Common applications for bioplastics include:

• Food packaging (bags, boxes, food wraps)
• Consumer products such as household items, toys, and everyday goods
• Medical equipment and liquid containers

The shift towards using bioplastics is part of a global movement to reduce plastic waste, and bioplastics are an excellent option to replace traditional plastics in many industries.

2. WHY IS IT IMPORTANT TO PAY ATTENTION TO THE LEGAL FRAMEWORK WHEN IMPORTING BIOPLASTICS?

Importing bioplastics into Vietnam is not a simple process and requires adherence to a variety of legal regulations both within Vietnam and internationally. Failing to comply with these regulations can result in tax issues, environmental violations, or failure to meet product quality standards. Therefore, it is crucial to understand the legal aspects thoroughly.

2.1. Relevant Laws and Decrees

1. Customs Law (Law No. 54/2014/QH13)
   • Regulates the customs procedures for import and export, including declaration, inspection, and supervision of imported goods.
   • Bioplastics are not prohibited for import but must be declared with complete information regarding origin, composition, and intended use.
2. Foreign Trade Management Law (Law No. 05/2017/QH14)
   • Regulates import-export activities and requires that products comply with regulations on origin and food safety, where applicable.
3. Environmental Protection Law (Law No. 72/2020/QH14)
   • Bioplastics must comply with environmental protection requirements, especially for packaging materials or products in direct contact with food.
4. Decree No. 69/2018/ND-CP
   • Details the management of export and import goods, with bioplastics not being restricted or prohibited for import. However, if the product is food packaging, food safety checks may apply.
5. Circular No. 38/2015/TT-BTC (Amended by Circular No. 39/2018/TT-BTC)
   • Regulates the customs declaration procedures for imported goods.

2.2. Safety Standards and Regulations

Products made from bioplastics must meet both national and international quality standards:

• ISO 17088: International standard for the biodegradability of bioplastics.
• QCVN 12-1:2011/BYT: National technical regulations for food-contact materials.

For food packaging bioplastics, businesses must ensure the product is free from harmful substances and undergo food safety inspections.

3. HS CODE DETERMINATION FOR BIOPLASTICS

HS code classification is important for determining the applicable tax rates, customs regulations, and other requirements for imported goods.

Here are some common HS codes for bioplastics:

• 3913: Natural polymers or processed bioplastics.
  • 39139000: Other polymers, including bioplastics made from corn starch, sugarcane, or palm oil.
• 3920: Sheets, films, and non-reinforced plastic products.
• 3923: Packaging materials and plastic goods.

The exact HS code depends on the composition and intended application of the bioplastic product. IPOLOGISTICS will assist your company in determining the correct HS code to ensure a smooth and accurate customs process.

4. IMPORT PROCEDURES FOR BIOPLASTICS

Below is the detailed process that IPOLOGISTICS follows to help your business import bioplastics efficiently and quickly:

Step 1: Consultation and Document Preparation

Required documents include:

• Trade contract
• Commercial invoice
• Packing list
• Bill of lading
• Certificate of origin (C/O): A valid certificate of origin is necessary to take advantage of trade agreements and tax benefits.
• Certificate of analysis (COA): If required for quality checks, especially for food-contact products.

Step 2: Industry-specific Checks

If the product is food packaging, the following may apply:

• Food safety registration at the Food Safety Department (Ministry of Health).
• Plant quarantine if the product is made from raw plant materials.

Step 3: Customs Declaration

• Use the VNACCS/VCIS system for customs declaration.
• IPOLOGISTICS supports your company with precise declarations, including HS code, origin, and product quality documents.

Step 4: Tax Payment and Customs Clearance

• Import tax: The import tax rate depends on the HS code and any applicable trade agreements (FTAs).
• VAT: The standard VAT rate for bioplastics is 10%.
• Customs clearance: After verifying documents, the product is cleared for importation and can be delivered to your business.

Step 5: Delivery and Post-importation Support

IPOLOGISTICS ensures that the goods are delivered to your designated address smoothly and safely.

5. TAX POLICIES AND TRADE ADVANTAGES

5.1. Import Tax

The import tax rate for bioplastics varies depending on the HS code, typically ranging from 0-10%. However, if you are importing from countries with free trade agreements (FTAs) like CPTPP, EVFTA, the tax may be reduced or even exempt.

5.2. VAT

Bioplastics are subject to the standard VAT rate of 10% when imported into Vietnam.

5.3. Trade Agreement Benefits

If the bioplastic product has a valid C/O from countries with FTAs, your business may be eligible for reduced import duties, which can significantly reduce costs.

6. WHY CHOOSE IPOLOGISTICS?

IPOLOGISTICS is committed to supporting your business throughout the entire importation process, from consultation, legal assistance, customs procedures, to logistics management. With our experienced team of experts, we ensure that your bioplastics importation is handled smoothly, effectively, and in full compliance with legal requirements.