Importing Straw

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Importing Straw and Customs Procedures Executed by IpoLogistics

1. Introduction to IpoLogistics

Importing Straw – IpoLogistics is a comprehensive logistics service provider specializing in international transportation, warehousing, customs clearance, and advanced logistics solutions for businesses in Vietnam. Among its key services is the importation of agricultural products such as straw, used in various industries such as animal feed production, paper manufacturing, fertilizer production, or as raw material in other sectors. Each imported product requires the company to execute customs procedures meticulously and comply with all regulations of Vietnamese law and international agreements.

This article details the entire process of importing straw into Vietnam, including customs declaration steps, clearance procedures, tariff policies, and phytosanitary requirements. Additionally, it outlines the legal and regulatory policies that IpoLogistics must adhere to during the import process.

2. Straw Import Process

Importing straw requires close coordination between all involved parties, including foreign suppliers, the importing company, customs authorities, and phytosanitary agencies. The process is structured as follows:

2.1. Identifying the HS Code for Straw

The Harmonized System (HS) Code is an international classification system for goods that determines tariffs and regulations applicable during import. The HS Code is crucial for customs clearance as it ensures that the product is classified correctly, avoiding higher tax rates or unnecessary inspection requirements.

For straw, the accurate HS Code is 1213, which covers products such as straw, hay, and other unprocessed plant residues. Correctly identifying the HS Code ensures compliance and smooth customs processing.

Specific HS Code for straw:

  • HS Code 1213: Straw and other unprocessed plant residues.
2.2. Preparation of Import Documentation

Once the HS Code is identified, the next step is to prepare all necessary import documents. These documents will be used for customs declaration and to verify the legality of the shipment at the port of entry. Key documents include:

  1. Commercial Contract: An official agreement between IpoLogistics and the foreign supplier outlining terms such as price, payment methods, delivery, and other conditions.
  2. Commercial Invoice: Details the shipment’s value, quantity, description of goods (straw), and relevant contract information.
  3. Bill of Lading (B/L): A transport document showing the shipment from the exporting country to the port of importation.
  4. Certificate of Origin (C/O): Verifies the origin of goods, especially for Free Trade Agreements (FTAs), which may provide tariff reductions or exemptions.
  5. Phytosanitary Certificate: Required for agricultural products like straw to confirm that the goods are free of pests or diseases that could harm domestic agriculture.
  6. Import Permit: In certain cases, especially for agricultural goods, an import permit from the Ministry of Agriculture and Rural Development may be required.
2.3. Customs Declaration

Customs declaration is a critical step where customs authorities verify shipment details and calculate applicable tariffs and fees. IpoLogistics performs customs declarations through Vietnam’s eCustoms system, providing the following details:

  • HS Code: Determines applicable tariffs and other regulatory requirements.
  • Detailed Description of Goods: Includes features, origin, material, and intended use of the imported straw.
  • Quantity and Weight: Essential for tariff calculation based on shipment value.
  • Information on the Supplier and Importer: Includes company names, addresses, and tax codes for both parties.
  • Transportation Details: Includes bill of lading number, carrier, and delivery dates.

Accurate and complete declarations are critical to avoiding fines or delays during customs clearance.

2.4. Phytosanitary Inspection and Quality Control

Since straw is an agricultural product, phytosanitary inspection is mandatory. Agencies such as the Plant Protection Department inspect shipments to ensure they are free of pests or diseases that might harm domestic crops.

Inspection typically involves the following steps:

  • Verification of the Phytosanitary Certificate: Ensures the product has valid certification from the exporting country’s inspection authority.
  • Sampling and Testing: Samples are taken for lab testing to confirm the absence of harmful pests or diseases.
  • Clearance Decision: If the shipment meets all requirements, a phytosanitary clearance certificate is issued.

Shipments failing to meet inspection criteria may be re-exported or destroyed per regulations.

2.5. Tariff Calculation and Related Fees

After completing inspections, the next step involves calculating and paying tariffs and other associated fees:

  1. Import Duty: Import duty on straw typically ranges from 0% to 10%, depending on Free Trade Agreements (FTAs) between Vietnam and the exporting country. For example, under the Vietnam-EU Free Trade Agreement (EVFTA), straw may be exempt from import duty.
  2. VAT (Value Added Tax): The VAT rate for imported goods in Vietnam is 10%, although certain agricultural products may qualify for exemptions or reductions.
  3. Other Fees: These include inspection fees, quality control fees, storage fees at the port (if applicable), and customs clearance fees.

These taxes and fees are calculated based on the declared shipment value, quantity, and other factors.

2.6. Completion of Customs Clearance

Once all taxes and fees have been paid, IpoLogistics receives a Customs Clearance Certificate from customs authorities. This document confirms that the goods have completed all necessary procedures and can be transported from the port to the company’s warehouse.

The transportation and warehousing process is managed efficiently to ensure the straw products are handled and delivered on time.

3. Legal Policies and Relevant Circulars

Importing straw into Vietnam requires strict compliance with legal policies and relevant circulars or decrees. Key legal references include:

  1. Vietnam Customs Law: Governs import-export procedures, customs declarations, and the rights and obligations of importers.
  2. Circular No. 38/2015/TT-BTC: Provides detailed regulations on customs procedures for import-export goods, including declaration processes, tax payment, and handling violations.
  3. Circular No. 39/2018/TT-BTC: Specifies tax-related customs procedures for imported goods, including agricultural products like straw.
  4. Free Trade Agreements (FTAs): Provide tariff reductions or exemptions for imports from member countries, significantly reducing import costs.

4. Conclusion

Importing straw into Vietnam is a complex process requiring strict compliance with customs, tariff, and phytosanitary regulations. IpoLogistics must carefully execute all customs declarations, tax payments, quality inspections, and phytosanitary checks to ensure smooth clearance. Understanding legal regulations, tariff policies, and related procedures is vital for optimizing import costs and enhancing logistics efficiency.

 

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