1. Footwear import policy
Procedures for importing footwear are specified in the following legal documents:
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Decree 195/2013/ND-CP dated 21/11/2013;
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Circular 65/2017/TT-BTC dated 27/06/2017;
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Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
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Decree No. 69/2018/ND-CP dated 15/05/2018;
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Circular 01/2020/TT-BTTTT dated 07/02/2020;
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Decree No. 43/2017/ND-CP dated 14/4/2017;
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Decree 128/2020/ND-CP dated 19/10/2020;
According to the above legal documents, footwear is not on the list of goods banned from import. However, when importing this item, it is necessary to pay attention to the following points:
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Footwear when imported with well-known brands must have a power of attorney from the company;
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When importing footwear, goods must be labeled according to 43/2017/ND-CP;
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Identify the correct hs code to determine the right tax and avoid penalties;
The above are legal documents regulating the process of carrying out procedures for importing footwear. If you do not fully understand the above regulations, please contact the hotline or hotmail for advice.
2. Identify the hs code of the footwear
Determining the HS code is the most important step when clearing for footwear imports. Identifying the hs code will determine import duties, VAT, and import policies. In order to determine the correct footwear HS code, you need to understand the characteristics of the goods: The material, composition and characteristics of the product.
2.1 Footwear HS Code
The hs code (Harmonized System) is a series of codes that are common to all goods worldwide. Between different countries in the world, only the number of tails differs. So the first 6 digits of the worldwide hs code for an item are the same. Here, Just In Time would like to share with you the shoe code plate.
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HS Code
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Description
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64011000
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Waterproof footwear, with rubber or plastic soles and caps, with or without an open toe.
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64019200
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Footwear with rubber or plastic outsoles and caps, which cover the ankles.
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64019900
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Other footwear has rubber or plastic soles and caps.
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64021200
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Footwear with a rubber or plastic outsole, a natural leather cap, type of sneakers.
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64021900
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Other footwear has a natural leather cap.
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64022000
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Footwear with a hood made of synthetic leather (simili, PU).
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64029100
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Footwear with a wooden or other material outsole, a cap made of natural leather.
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64029900
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Other footwear with caps made of other materials (fabric, synthetic plastic, etc.).
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64032000
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The footwear has a leather outsole, a hat made of natural leather.
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64034000
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Shoes with leather outsoles, caps made of textile material.
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64035100
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Shoes with rubber outsoles, caps made of textile material – sneakers.
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64035900
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Other footwear with caps made of woven material.
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64039100
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Footwear has a leather outsole, a hat made of synthetic materials.
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64039900
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Other footwear with a leather outsole or other material.
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64042000
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Sandals, clogs, sandals with rubber, plastic, leather or other synthetic outsoles.
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64051000
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Footwear with a non-woven upper.
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64059000
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Other footwear (including footwear for household use, cloth slippers, foam slippers).
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2.2 Risks of applying the wrong HS code
Identifying the correct HS code is very important when clearing the import of shoes. Misidentifying the hs code will bring certain risks to you, such as:
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Delay in customs clearance: Incorrect declaration of HS codes can lead to delays in customs procedures, as time is needed to check and verify accurate information about the type of goods;
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Being fined for falsely declaring the hs code according to Decree 128/2020/ND-CP;
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Delay in delivery: If the goods are found to have an incorrect HS code, the customs authority may request correction or clarification of the information. This can lead to delays in the delivery process and affect the production and business cycles of the business;
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In case of incurring import tax, they will face a fine of at least 2,000,000 VND and a maximum fine of 3 times the tax amount;
To correctly identify the hs code for a specific type of footwear. Please contact the hotline or hotmail for advice.
3. Footwear import tax
Determining import taxes is an important task when carrying out footwear import procedures. The import duty of the goods depends on the hs code of the item. Each HS code has a specific tax rate. Here, Door to Door Viet would like to introduce how to calculate import tax and notes when determining import tax.
3.1 How to calculate footwear import tax
Import taxes are calculated according to the same formula as other items. There are two types of import duties of this item, namely import duty and import VAT.
Import tax determined by HS code Import tax is calculated according to the formula:
Import tax = CIF value x % of tax rate
Import VAT is determined according to the formula:
Value Added Tax = (CIF Value + Import Tax) x % VAT.
The CIF value is determined by the ex-factory value of the goods plus all costs to bring the goods to the first border gate of the importing country. Import tax is an expense that is included in the cost of goods sold for an order. Therefore, you must check the correct HS code to get the best import tax code.
3.2 Notes when determining footwear import tax
When determining footwear import tax, it is necessary to pay attention to the following points:
For countries that have signed trade agreements with Vietnam such as: Europe, India, Australia, Chile, China, Korea, Japan, ASEAN countries. It is necessary to note that the special preferential tax rate is usually 0%.
To enjoy preferential tax rates, a certificate of origin is required;
The taxable value is the CIF value. For purchases under other conditions. When calculating import tax, the value must be converted to the CIF value for import tax calculation.
Import taxes will also be subject to VAT.
Those are the notes when calculating footwear import tax. If you don't understand how taxes are calculated and the notes above. Please contact the hotline or hotmail for advice.
4. Labeling of imported goods
Labeling on imported goods is not a new regulation. However, since Decree 128/2020/ND-CP was issued, the labeling of imported goods has been more closely supervised. Labeling of goods aims to help administrative agencies manage goods, determine the origin and unit responsible for the goods. Therefore, labeling goods is one of the indispensable stages when carrying out procedures for importing shoes from different countries.
4.1 Label content
In addition to having to be labeled, the content of the label is also very important. The content of labels of items is specified in Decree No. 43/2017/ND-CP. For footwear items of all kinds, the content of a full label includes the following information:
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Information of the exporter's family (address, company name);
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Information of the importer (address, company name);
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Name of goods and commodity information;
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Origin of goods;
Those are the basic label content that needs to be affixed to the goods. The information presented must be in English or other languages that must be translated. When carrying out procedures for importing footwear, if you encounter a red channel, the customs inspection will pay great attention to the content of the label above.
4.2 Labeling Placement on Goods
Applying labels to goods is necessary, but applying them in the right place is more important. When importing, the label of the goods needs to be affixed to the surfaces of the package such as: On cartons, on wooden bales, on product packaging. Or any place as long as it is convenient to check and easy to see. Labeling in the right place will help save inspection time when carrying out procedures for importing footwear of all kinds.
For retail goods on the market, it is necessary to show more information. Such as manufacturer, quantity of goods, specifications, production dates, safety warnings.
4.3 Risks encountered when not labeling
Labeling goods is caught in accordance with the law. If the goods are not labeled when imported or the contents of the goods labels are wrong. Then the importer faces the following risks:dddd
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Fined as prescribed, the fine level is specified in Article 22 of Decree 128/2020/ND-CP;
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Not entitled to special preferential import duties because the certificate of origin will be rejected;
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Goods are easily lost or damaged due to the absence of warning labels for loading, unloading and transportation;
With the above risks, we recommend that you put labels on goods when importing footwear of all kinds. If you don't fully understand the labeling regulations. Please contact the hotline or hotmail for advice.
5. Dossiers for carrying out procedures for importing footwear
The dossier for importing footwear in particular, other items in general. Specified in Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018.
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Customs declaration;
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Bill of lading;
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Commercial invoices;
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Commercial contract (sale contract);
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Packing list;
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Bill of lading;
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Certificate of origin -CO (Certificate of origin);
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Catalogue (if any), and other documents if required by customs;
Above are all documents used to carry out customs clearance procedures for footwear. The most important are customs declarations, commercial invoices, bills of lading and certificates of origin (CO). Other documents will be supplemented if requested by the customs office.
In the above documents, the customs declaration is declared after the goods have arrived at the port. Other documents are available from the beginning, so importers should prepare in advance, avoiding the situation that the goods have arrived at the port and then prepared. It will extend the time to carry out procedures for importing footwear powder.
Although the certificate of origin is a document that is not required in the import dossier. However, it is very important because it affects the amount of import taxes so you need to ask the seller to provide CO.
6. Procedures for importing footwear
The process of importing shoes as well as other items. It is very specifically stipulated in Circular 38/2015/TT-BTC dated 25/3/2015 amended and supplemented 39/2018/TT-BTC dated 20/04/2018. We've summarized the short description steps so you can get a picture of the big picture.
Step 1. Customs
declaration After having all import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival and identification of footwear HS code. Then you can enter the declared information into the customs system via software.
The declaration of customs declarations on customs software. It requires the importer to have an understanding of input into the software. You should not file a customs declaration on your own without a clear understanding of the job. The arbitrary declaration may have wrong points that cannot be corrected on the customs declaration. At that time, it will take a lot of money and time to fix.
Within 30 days from the date the goods arrive at the port, the customs declarant must make a customs declaration. If this time limit is exceeded, the importer must face a fine fee from the customs.
This is the most important step in the process of importing sports footwear. All declared contents will be pushed to the customs system. If there is an error affecting the tax or origin of the goods. Then importers can face fines under customs laws. Therefore, it is necessary to pay attention to the information entered on the declaration such as HS code, tax rate, name of goods, origin.
Step 2. Opening the customs
declaration After the customs declaration is completed, the customs system will return the results of the declaration channeling. If there is a declaration flow, print out the declaration and bring the import dossier to the Customs Sub-Department to open the declaration. Depending on the green, yellow and red channels, take steps to open the declaration.
The opening of the declaration must be carried out as soon as possible, within 15 days from the date of declaration of the declaration. The declarant must bring the dossier to the Sub-department of Customs to open the customs declaration. Within 15 days the declaration will be cancelled and you will face a penalty fee from customs.
Note: After having an official declaration, it is necessary to contact the Customs Sub-Department to carry out procedures for importing sports shoes. It is not recommended to leave the declaration for a long time before bringing it down for import procedures.
Step 3. Customs clearance of the customs
declaration After checking the dossier, if there are no questions, the customs officer will accept the customs clearance of the declaration. You can now pay import duties on your customs declaration to clear your goods.
In some cases, the declaration will be released to take the goods to the warehouse for storage first. After completing all the dossiers, the customs will proceed to customs clearance of the customs declaration. When the declaration has not been cleared, it is necessary to carry out procedures for customs clearance. If you are overdue, you will face a penalty fee and it will take a lot of time.
Step 4. Bring the goods to the warehouse for preservation and use
of the customs clearance declaration, then proceed to liquidate the declaration and carry out the necessary procedures to bring the goods to the warehouse. In order to be able to pick up the goods smoothly, you need to prepare a full drop order, means of transport and goods that are accepted for passing through the surveillance area.
Above is the process of steps to carry out procedures for importing shoes. If you do not understand the steps of the process, please contact us via hotline or hotmail for advice.
7. Notes when carrying out procedures for importing footwear
When sewing shoes, it is necessary to pay attention to the following points:
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Goods shall be granted customs clearance only when tax obligations to the state have been fulfilled;
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Certificate of origin (c/o) of preferential forms such as: form E, form D, form AK... very important. Decide on the amount of import duties, so you need to prioritize when negotiating with suppliers;
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When importing footwear, goods must be labeled according to 43/2017/ND-CP;
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Identify the correct hs code to determine the right tax and avoid penalties;
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Branded footwear that wants to be imported must have a power of attorney from the company;
If you have difficulties when clearing customs, you can choose Just In Time as a companion.
Just In Time's staff is always enthusiastic to support you to handle your work quickly and professionally.
JUST IN TIME JOINT STOCK COMPANY
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