Procedures for Importing Footwear Processing Machines
Importing footwear processing machines requires compliance with complex legal regulations regarding customs, tariffs, and specialized permits. To ensure a smooth and accurate process, businesses need to be aware of the necessary steps and accompanying legal requirements.
1. Determining the HS Code (Harmonized System Code) for Footwear Processing Machines
The HS code plays a critical role in determining import duties, specialized management policies, and required procedures. Correctly identifying the HS code for each type of footwear processing machine is the first and most crucial step in the import process.
Some common HS codes related to footwear processing machines include:
- HS Code 8453.10.00: Machinery and equipment for producing or repairing footwear.
- HS Code 8453.20.00: Machines for producing leather or imitation leather products.
- HS Code 8453.80.00: Other machinery for footwear manufacturing not otherwise classified.
How to accurately search for the HS code:
- Search via the Customs Information Portal: Businesses can look up HS codes using the system provided by the General Department of Vietnam Customs.
- Consult experts or local customs: To ensure the correct HS code is applied, it is advisable to consult industry experts or local customs authorities.
Correctly applying the HS code not only helps determine the import tariff rates but also avoids the risk of misclassification, which could lead to back taxes or penalties after customs clearance.
2. Import Policies for Footwear Processing Machines
Depending on the HS code, footwear processing machines may fall under specialized management or require post-clearance quality inspection. To ensure the import process complies with legal regulations, businesses must clearly verify:
- Specialized management requirements: Some types of machinery may need to meet technical, safety, and environmental standards.
- Quality inspection of imported goods: The quality of the machines may need to be inspected according to set standards. For example, mechanical processing machines may need to comply with safety and environmental protection standards before they can be used.
3. Import Duties and Other Taxes
When importing footwear processing machines, businesses are required to pay several basic taxes, including:
- Import duty: Depending on the HS code, the import duty is calculated as a percentage of the CIF (Cost, Insurance, and Freight) value. Typical duty rates range from 0% to 15%, depending on the type of machine and the country of export.
- Preferential tariffs: If the footwear processing machines are imported from countries that have signed Free Trade Agreements (FTAs) with Vietnam, such as ASEAN, EU, or CPTPP, businesses can enjoy preferential tax rates if they provide valid Certificates of Origin (C/O).
- Value-added tax (VAT): The VAT for imported machinery is generally 10%.
- Other taxes and fees: Depending on the characteristics of the machine, businesses may also be subject to additional fees, such as environmental protection taxes for machinery that impacts the environment.
4. Preparing Import Documentation
Proper documentation is key to ensuring a smooth customs clearance process. The required documents include:
- Customs declaration form: Completed via the VNACCS/VCIS electronic system.
- Commercial contract (Sale Contract): An agreement between the buyer and the seller detailing the terms of the transaction.
- Commercial invoice: A document confirming the value of the shipment.
- Packing list: A document specifying the quantity, weight, and packaging details of the shipment.
- Bill of lading: A document for the transportation of goods from the supplier to Vietnam.
- Certificate of origin (C/O): Used to enjoy preferential tariffs if the goods come from countries with FTAs with Vietnam.
- Import license (if applicable): For certain types of machinery that require specialized permits.
- Certificate of quality inspection (if required): Some machinery may require quality certification from relevant authorities.
5. Customs Clearance Procedures
Once all necessary documents are prepared, businesses will proceed with customs clearance through the VNACCS/VCIS system. The process involves the following key steps:
- Electronic customs declaration: Businesses must declare shipment details via the electronic customs system, including the HS code, CIF value, quantity, weight, and other relevant documents.
- Inspection and clearance: Customs will review the documentation and may conduct physical inspections of the goods if necessary. If the goods are subject to quality control, businesses must coordinate with the relevant inspection agency (e.g., Ministry of Science and Technology, Ministry of Industry and Trade) to complete the inspection.
- Tax payment: Once the customs declaration is accepted, businesses must pay the applicable taxes and fees. This includes import duties, VAT, and other relevant taxes (if any).
6. Legal Regulations
To ensure compliance during the import process, businesses must adhere to the following legal regulations:
- Decree 69/2018/ND-CP: Provides detailed regulations on some provisions of the Law on Foreign Trade Management, including regulations on importing machinery and equipment.
- Decree 85/2019/ND-CP: Governs administrative procedures through the National Single Window and ASEAN Single Window mechanisms related to import and customs declaration.
- Circular 23/2015/TT-BKHCN: Concerns the importation of used machinery and equipment, including conditions and standards for importing used footwear processing machines.
7. Post-Clearance Inspection
After completing the import procedures, businesses may be subject to post-clearance inspections. This step is crucial to ensure that customs declarations were made accurately and that businesses have fulfilled all tax and legal obligations.
8. Key Considerations
- Used machines: If importing used footwear processing machines, businesses must ensure that the machinery meets the age and quality requirements as prescribed by law. The equipment must be less than 10 years old or meet the technical standards specified.
- Warranty and maintenance: When importing machinery, clear agreements on warranty and maintenance from the supplier are essential to ensure the equipment operates effectively.
Conclusion
The process of importing footwear processing machines requires businesses to follow a comprehensive set of regulations, from determining the HS code, preparing the necessary documentation, to complying with customs clearance procedures and legal regulations. A clear understanding of the process and policies helps businesses avoid legal and tax risks while ensuring efficient and timely imports.