IMPORTING HEAT-INSULATING FILM

IMPORTING HEAT-INSULATING FILM BY IPOLOGISTICS

1. Introduction to Heat-Insulating Film and Import Demand

Heat-insulating film is a specialized product made from polymer plastic materials with the ability to reflect and absorb heat. This type of film is typically applied to glass surfaces of cars, homes, offices, and construction projects for the purpose of insulation, temperature reduction, UV protection, and safeguarding interiors. Heat-insulating film is becoming increasingly popular and necessary in the Vietnamese market.

In the tropical climate with high humidity and high temperatures, the demand for heat-insulating film is rising significantly. Therefore, Vietnamese enterprises import heat-insulating film from countries with advanced manufacturing technology, such as Japan, South Korea, the USA, and China.

Ipologistics is a leading logistics company specializing in consulting and implementing import procedures for heat-insulating film in Vietnam. This article will provide a detailed and professional overview of the heat-insulating film import process, including related HS codes, legal bases, state regulations, and customs procedures.

2. HS Code for Heat-Insulating Film

Determining the HS code for heat-insulating film accurately is an important step in the import process. The HS code not only helps classify goods but also affects the calculation of import tax and value-added tax (VAT).

• HS Code 3920: Used for plastic sheets, films, and foils with heat-insulating properties.
  • 3920.20.10: Polyethylene sheets and films with a thickness of no more than 0.125mm, primarily used for insulation.
  • 3920.20.90: Other types of polyethylene films and sheets.
  • HS Code 3920.62.00: Sheets, films, and foils made from polyethylene terephthalate (PET), a commonly used plastic for heat-insulating film.

Note: The accurate HS code depends on the specific material composition and application of the product. Enterprises should contact customs authorities to determine the correct HS code or use the consulting services of Ipologistics to ensure validity when declaring.

3. Legal Basis for Importing Heat-Insulating Film

Importing heat-insulating film in Vietnam must comply with relevant legal regulations and frameworks. The following legal documents guide enterprises in importing:

• Customs Law No. 54/2014/QH13: Regulations regarding customs activities, the rights, and obligations of customs declarants.
• Law on Export and Import Tax No. 107/2016/QH13: Defines the types of taxes applicable to imported goods.
• Decree No. 187/2013/ND-CP: Detailed regulations on the implementation of the Trade Law regarding international goods trading.
• Circular 38/2015/TT-BTC and Circular 39/2018/TT-BTC: Guidelines on customs procedures, inspections, and customs supervision of exported and imported goods.
• Decree 15/2018/ND-CP: Regulations on inspections and certifications of conformity with technical standards and quality standards for specific imported products, including those related to health and environment.

In addition to the above regulations, enterprises importing heat-insulating film must also comply with quality inspection regulations if the product is under the management of relevant authorities. Heat-insulating film may require inspection according to National Technical Regulations QCVN or Vietnamese Standards TCVN for building materials or industrial plastic products.

4. Detailed Import Procedures for Heat-Insulating Film

4.1. Import Documentation

Import documentation for heat-insulating film should include the following:

1. Sales Contract: A contract between the importer and exporter specifying terms regarding the product, quantity, price, and delivery conditions.
2. Commercial Invoice: Confirms the value of the imported heat-insulating film.
3. Packing List: Provides detailed information about quantity, weight, and packaging of goods.
4. Bill of Lading (B/L) or Airway Bill (AWB): Transport documents confirming the goods have been shipped by sea or air.
5. Certificate of Origin (C/O): Confirms the country of origin of the goods. If the heat-insulating film is imported from ASEAN countries or China, enterprises may use C/O Form D or Form E to benefit from tax preferences under free trade agreements.
6. Quality Inspection Certificate (if any): Some heat-insulating films require quality inspections by authorized agencies (e.g., the Directorate for Standards, Metrology and Quality or the Ministry of Construction).
7. Import License (if any): If the heat-insulating film is subject to special control or specialized management, enterprises must apply for an import license.

4.2. Electronic Customs Declaration

Customs declaration is a mandatory step in the import process. Enterprises need to perform the declaration on the VNACCS (Vietnam Automated Cargo And Port Consolidated System). The customs declaration process includes:

1. Log in to VNACCS: Use the registered enterprise account to access the electronic customs system.
2. Enter Declaration Data: Enterprises must provide all information about HS codes, quantities, values, importer and exporter details, means of transport, and port of entry.
3. Select Inspection Channel: After declaration, the system will classify goods into channels:
   • Green channel: Exempt from physical inspection, only document inspection.
   • Yellow channel: Document inspection only, no physical inspection required.
   • Red channel: Requires physical inspection of goods and documents.
4. Complete Declaration: After system approval, enterprises receive the customs declaration code and proceed with the next steps.

4.3. Tax Payment and Goods Clearance

After completing the customs declaration, enterprises must fulfill financial obligations, including:

1. Import Tax: The import tax rate for heat-insulating film depends on the HS code and trade agreements with the exporting country. For instance, the import tax rate under ACFTA (ASEAN-China Free Trade Agreement) may be lower than the standard tax rate.
2. Value-Added Tax (VAT): Typically, heat-insulating film is subject to VAT at a rate of 10%.
3. Customs Fees and Other Charges: Enterprises must pay service fees such as customs clearance fees, storage fees (if any), and other incidental costs.

Once all taxes and fees are settled, customs authorities will review and grant clearance for the goods.

4.4. Quality Inspection and Import License

Quality inspection of the product is a critical step for certain types of heat-insulating film. Enterprises must comply with the inspection process as stipulated by the government:

1. Register for Quality Inspection: Register with the Directorate for Standards, Metrology and Quality or other relevant authorities if the product requires quality inspection before import.
2. Submit Sample for Inspection: Enterprises need to send product samples for evaluation by the inspection authority, especially for heat-insulating films with stringent technical standards.
3. Receive Quality Inspection Certificate: Upon successful quality assessment, the inspection authority will issue a certificate for the enterprise to complete the import process.

5. Conclusion

Importing heat-insulating film is a complex process that requires enterprises to comply with legal regulations and follow proper customs procedures. Adequate preparation of documentation, accurate HS code determination, and fulfilling tax obligations are essential factors for a smooth import process. Ipologistics proudly serves as a reliable partner in supporting enterprises in executing import procedures professionally, swiftly, and effectively.