Procedures for Importing Inverters

Procedures for Importing Inverters into Vietnam

Inverters are electronic devices used to control the speed and torque of electric motors. To import these devices into Vietnam, businesses must comply with Vietnamese legal regulations related to the importation of electrical and electronic goods. Below is a detailed and professional guide to the procedures for importing inverters, including legal requirements and processes:

1. HS Code and Tax Policy

HS Code for Inverters: The correct HS code is crucial for determining applicable tax rates and required documentation. Inverters generally fall under the HS code 8504.40.90 – Other static converters.
- The exact HS code for inverters should be determined based on the product’s power, technical characteristics, or application.
- Note: Depending on the specific features, origin, and type of inverter, different tax rates and inspection policies may apply. For instance, inverters used for renewable energy or heavy industry may have distinct HS codes.
Import Duties and VAT:
- Import Duty: Typically, inverters have an import duty ranging from 0% to 10%, depending on the country of origin and trade agreements (FTAs, ASEAN, CPTPP, EVFTA, etc.).
- VAT: Inverters are currently subject to a VAT of 10%.
To benefit from preferential tax rates, businesses must provide a valid Certificate of Origin (C/O) in accordance with trade agreements between Vietnam and other countries.

2. Import Policies and Legal Regulations

Not on the Prohibited List: Inverters are not on the list of prohibited imports as per Decree 69/2018/ND-CP. However, these items must meet regulations regarding product quality, electromagnetic compatibility (EMC), and electrical safety before being allowed to enter the market.
Regulations on Compliance:
- According to Circular 05/2019/TT-BKHCN and Circular 08/2019/TT-BKHCN, electronic devices such as inverters must undergo compliance certification according to national technical regulations (QCVN) before they can be sold in the market.
- Compliance certification must be conducted by designated organizations such as Quatest 1, Quatest 3, or other recognized testing bodies.

3. Import Process

a. Preparing Import Documents

When importing inverters, businesses need to prepare the following documents:

Sales Contract: The agreement between the buyer and seller outlining the terms of the sale.
Commercial Invoice: Indicates the value of the shipment.
Packing List: Provides details about the weight, quantity, and packaging of the goods.
Bill of Lading: Proof of transportation showing that the goods have been shipped.
Certificate of Origin (C/O): For preferential tax rates if applicable.
Customs Declaration: Report of goods and import procedures to customs authorities.

b. Customs Declaration

Step 1: Businesses must declare their imports through the VNACCS/VCIS electronic customs system using their tax code and the determined HS code.
Step 2: Customs authorities will process the declaration and categorize it into:
- Green Channel: Goods are cleared immediately without physical inspection.
- Yellow Channel: Businesses need to submit additional documents such as contracts, invoices, and bills of lading for customs review.
- Red Channel: Physical inspection of goods along with document verification.

c. Quality Inspection

According to Decree 132/2008/ND-CP on quality control of imported goods, inverters must meet electromagnetic compatibility (EMC) and electrical safety standards. The quality inspection process includes:

Registering for Quality Inspection: Businesses must register their goods for quality inspection with authorities such as The Directorate for Standards, Metrology and Quality or designated testing centers.
Submitting Samples for Testing: For large shipments, testing agencies will require samples to assess compliance with technical standards such as QCVN.
Obtaining Compliance Certificate: After successful inspection, businesses receive a Certificate of Compliance and can proceed to market distribution.

d. Compliance Declaration and Certification

After obtaining the quality inspection results, businesses must complete the compliance declaration at the Department of Industry and Trade or other relevant authorities.
Required documents for compliance declaration include:
- Copy of the Compliance Certificate.
- Technical documentation of the product.
- Test reports on quality standards.

e. Paying Taxes and Receiving Goods

After completing quality inspection and customs procedures, businesses must pay the import duties and VAT based on the HS code and declared documents.
Upon fulfilling all tax obligations, businesses can retrieve their goods from the port or bonded warehouse.

4. Relevant Legal Documents

Businesses importing inverters should be aware of and comply with the following legal documents:

Decree 69/2018/ND-CP: Detailed regulations on foreign trade management and permissible imports.
Decree 132/2008/ND-CP: Regulations on quality control for imported goods.
Circular 05/2019/TT-BKHCN: Regulations on state quality inspection of imported electronic, electrical, and household appliances.
Circular 08/2019/TT-BKHCN: National technical regulations on electrical safety and electromagnetic compatibility for electrical and electronic devices.
Law on Foreign Trade Management 2017: Governs import and export activities.

5. Important Considerations

Quality Control: Ensure that imported inverters meet QCVN standards to avoid rejection of goods or difficulties in market distribution.
Certificate of Origin (C/O): Prepare all necessary origin documents to benefit from preferential tax rates.
Electromagnetic Compatibility (EMC): This is a critical factor that inverters must meet, especially for industrial applications.

Conclusion

Importing inverters into Vietnam involves careful preparation of documentation, adherence to tax regulations, and ensuring compliance with quality and safety standards. By following the detailed procedures outlined, businesses can effectively manage the import process and ensure the legal distribution of their products in the Vietnamese market.

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