importing solar panels into Vietnam

1. Determining the HS Code and Import Policies

HS Code:

• Solar panels are generally classified under HS code 8541.10.00. This is the common HS code for semiconductor devices, including solar panels. However, to accurately determine the correct HS code, businesses should consult with customs authorities or use customs consultancy services.

Import Policies:

• According to Decree No. 69/2018/ND-CP, solar panels are not listed in the categories of goods prohibited or restricted from importation. This means businesses can import them freely without requiring any special permits.
• Solar panels do not require a conformity certification (according to Circular No. 11/2012/TT-BKHCN) when imported and circulated in the Vietnamese market.
• Import Duty: The preferential import tax rate is generally 0% if the business has a certificate of origin (C/O) from countries that have a free trade agreement with Vietnam, such as ASEAN, China, Korea, Japan.

2. Preparing Import Documents

Basic Import Documents:

Import documents for solar panels include the following, in accordance with Circular No. 38/2015/TT-BTC (amended and supplemented by Circular No. 39/2018/TT-BTC):

1. Sales Contract:
   • Legal Basis: Article 24 of the 2005 Commercial Law stipulates the content of international goods sale contracts.
   • Content: Clearly state the information about the goods (type, quantity, price), delivery terms (Incoterms), payment terms, and the rights and obligations of the parties.
2. Commercial Invoice:
   • Legal Basis: Clause 5, Article 16 of Circular No. 39/2018/TT-BTC.
   • Content: Reflect the value of the goods, delivery terms, seller and buyer information, and the importer’s tax code.
3. Packing List:
   • Legal Basis: Article 18 of Decree No. 08/2015/ND-CP and Article 6 of Circular No. 38/2015/TT-BTC.
   • Content: Clearly state the details of packaging, the number of packages, and the dimensions and weight of each package.
4. Bill of Lading:
   • Legal Basis: Article 18 of Circular No. 39/2018/TT-BTC.
   • Content: Reflect information about the shipment, transportation details, ship name, voyage number, departure and arrival dates, sender and receiver information.
5. Certificate of Origin (C/O):
   • Legal Basis: Article 5 of Decree No. 31/2018/ND-CP and Circular No. 05/2018/TT-BCT.
   • Content: Certify the origin of the goods to enjoy tariff preferences under free trade agreements.
6. Customs Declaration:
   • Legal Basis: Article 29 of the 2014 Customs Law.
   • Content: Businesses declare all information about the shipment, HS code, customs value, import tax rate, and other relevant information through the VNACCS system.

Other Documents (if any):

• Import License: For specific goods or those requiring licenses.
• Insurance Documents: If purchasing goods insurance.
• Quality Inspection Certificate from Exporting Country: Recommended to ensure product quality before import.

3. Customs Procedures

Step 1: Register the Customs Declaration

• Legal Basis: Article 18 of the 2014 Customs Law and Circular No. 38/2015/TT-BTC.
• Process: Businesses register the customs declaration electronically through the VNACCS system, filling in all necessary information such as HS code, customs value, quantity, unit price, and other relevant details.

Step 2: Customs Declaration Channeling

• Legal Basis: Article 22 of Circular No. 39/2018/TT-BTC.
• Process: After registration, the system will automatically channel the customs declaration:
  • Green Channel: Exempt from detailed document and goods inspection, and clearance is granted immediately.
  • Yellow Channel: Detailed document inspection, may require additional documents.
  • Red Channel: Detailed document inspection and physical inspection of the goods.

Step 3: Payment of Import Duty and VAT

• Legal Basis: Article 3 of Circular No. 83/2014/TT-BTC.
• Process: Businesses calculate and pay the import duty (usually 0% if a C/O is available) and value-added tax (VAT) for the shipment (currently 10%).

Step 4: Physical Inspection of Goods (if applicable)

• Legal Basis: Articles 34 and 35 of the 2014 Customs Law.
• Process: If the shipment is channeled to the red channel, customs will conduct a physical inspection at the port. The inspection includes verifying the quantity, quality, and type of goods against the declaration.

Step 5: Completion of Customs Clearance

• Legal Basis: Article 37 of the 2014 Customs Law.
• Process: After inspection, if everything is in order, customs will approve the clearance, and the business can receive the goods.

4. Quality and Safety Standards

National Standards:

• TCVN 11856:2017: Regulations on performance and safety for solar panels. Importing businesses need to ensure their products comply with this standard to avoid safety and efficiency risks.

International Certifications:

• IEC 61215: Regulations on the performance testing of solar panels.
• IEC 61730: Regulations on electrical safety testing.

Although not mandatory, having these certifications helps ensure product credibility and quality, as well as competitiveness in the market.

5. Relevant Legal Regulations

Decree No. 69/2018/ND-CP:

• Content: Regulations on the management of foreign trade activities, including lists of goods prohibited and restricted from import. Solar panels are not on this list.

Circular No. 11/2012/TT-BKHCN:

• Content: Regulations on conformity certification, applicable to certain specific products. Solar panels do not require a conformity certification.

Decree No. 31/2018/ND-CP and Circular No. 05/2018/TT-BCT:

• Content: Regulations on the origin of goods and procedures for issuing certificates of origin (C/O). Businesses must comply to benefit from import tariff preferences.

Circular No. 38/2015/TT-BTC (amended by Circular No. 39/2018/TT-BTC):

• Content: Regulations on customs procedures, inspection, customs supervision, and goods clearance.

6. Important Notes

• Pre-import Quality Check: Ensure that the solar panels meet international and national standards, avoiding legal and quality risks after import.
• Use Customs Consultancy Services: If importing for the first time, businesses should consider using the services of customs consultancy firms to ensure smooth procedures.