Guide on Importing Woven Fabric Straps into Vietnam
1. Assessing the Complexity of Importing Woven Fabric Straps
Importing woven fabric straps into Vietnam is not overly complicated. But businesses must comply with specific regulations and thoroughly prepare the necessary documents to ensure smooth customs clearance. Woven fabric straps are widely used in the textile industry, including products like curtains, bag straps, handbags, shoes, and more. As a result, the demand for importing these goods is increasing.
2. Quality Control Requirements and Necessary Documentation
2.1. Quality Control
Currently, woven fabric straps are not listed as products requiring quality inspection under Vietnamese regulations before importation. This means that businesses do not need to apply for an import license or perform specialized inspections for this item. However, regulations can change, so businesses should regularly update their information from customs authorities or relevant agencies.
2.2. Necessary Documentation
To proceed with customs declaration, businesses must prepare and submit the following documents:
- Bill of Lading: This document, issued by the shipping company or carrier, confirms that the goods have been transported from the exporter to the importer in Vietnam. The Bill of Lading typically includes information such as the names of the sender and receiver, a description of the goods, and the shipping terms.
- Invoice: The commercial invoice is the most basic document in the customs declaration file. It lists the detailed value of the goods, quantity, unit price, and payment terms. It also serves as the basis for customs to determine the amount of import duty payable.
- Packing List: The packing list provides detailed information on how the goods are packed, including the number of packages, the weight of each package, dimensions, and the contents of each package. This document helps customs verify and compare with the actual imported goods.
- Contract: The commercial contract between the buyer and the seller clearly specifies the terms regarding price, quantity, quality, and delivery time. This is the legal basis for international commercial transactions.
- Certificate of Origin: The Certificate of Origin helps determine the origin of the product and is the basis for businesses to enjoy tariff preferences under free trade agreements (FTAs). For woven fabric straps, the certificate of origin may help reduce or exempt import duties if the goods originate from countries with trade agreements with Vietnam.
Note: According to Decree No. 43/2017/ND-CP of the Government on labeling, imported products must have clear origin labels, providing sufficient information about the manufacturer, country of origin, and other required information.
3. HS Code and Import Duties for Woven Fabric Straps
3.1. HS Code
Accurately determining the HS (Harmonized System) code for woven fabric straps is crucial for calculating import duties and other related taxes. The HS code is a global product classification system used to ensure consistency in international trade. Below are common HS codes for woven fabric straps:
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580810: Braided strips.
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58081010: Woven fabric straps combined with rubber.
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Preferential Import Duty: 12%
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Value Added Tax (VAT): 10%
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Tariff Preferences: If there is a Certificate of Origin (C/O) from countries such as Japan, China, or ASEAN countries, businesses may enjoy a 0% tariff rate.
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58081090: Other woven fabric straps.
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Preferential Import Duty: 12%
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Value Added Tax (VAT): 10%
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Tariff Preferences: Similar to the above, if there is a valid C/O, the import duty rate can be reduced to 0%.
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Note: The specific HS code may vary depending on the nature and design of the product. Businesses should check with customs authorities or consult experts to determine the most accurate HS code for their imported products.
3.2. Applicable Taxes
When importing woven fabric straps, in addition to import duties and VAT, businesses may also have to pay additional fees such as inspection fees, storage fees, customs fees, and other related costs. Therefore, detailed financial planning is essential to ensure the import process is efficient and free of unexpected costs.
4. Importing Process for Woven Fabric Straps
To ensure a smooth and legally compliant import process, businesses should follow these steps:
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Contact the Supplier: Discuss and monitor the production and packaging process. Ensure that all quality, packaging, and labeling requirements are strictly followed according to the contract.
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Check Import Documents: Verify that all documents such as the commercial invoice, packing list, and commercial contract are accurate and complete.
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Book with the Shipping Agent: Obtain a booking from the shipping agent, ensuring that information about the origin, destination, product name, volume, and weight is clearly and accurately recorded.
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Receive the Arrival Notice: After the goods arrive in Vietnam. Receive the arrival notice from the shipping company along with the debit note for payment of related fees and obtain the Delivery Order.
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Submit the Customs Declaration: Use the ECUS software to submit the customs declaration. Businesses must fill out the information about the goods completely and accurately to avoid errors that could delay customs clearance.
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Submit the Customs Documentation: In case the declaration falls into the yellow or red channel, businesses need to submit additional documentation or conduct an inspection with customs. For the red channel, the goods will undergo a detailed inspection before being cleared.
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Clearance and Delivery to the Warehouse: After the goods are cleared, businesses can collect the goods and transport them to the warehouse. Ensure that all related costs have been fully paid.
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Document Retention and Tax Reporting: Store all documents related to the imported goods for tax reporting and post-clearance inspection (if any). Businesses should also monitor and fulfill their related tax obligations to avoid legal risks.
By adhering to the correct procedures and thoroughly preparing the documentation. Businesses will ensure the smooth import of woven fabric straps into Vietnam, complying fully with legal regulations and optimizing costs.