Procedures for importing medical cotton

1. Medical cotton import policy

Procedures for importing medical cotton. Regulated in the following legal documents:

• Circular 26/2015/TT-BTC dated February 27, 2015;
• Circular 39/2016/TT-BYT dated October 28, 2016;
• Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by 39/2018/TT-BTC dated April 20, 2018;
• Circular 14/2018/TT-BYT dated May 15, 2018;
• Official Letter 4658/BYT-TB-CT dated August 12, 2019;
• Decree 98/2021/ND-CP dated November 8, 2021;
• Circular guiding /2021/TT-BYT dated /12/2021. Guidance on the implementation of Decree 98/2021/ND-CP;
• Decree No. 43/2017/ND-CP dated April 14, 2017;
• Decree 128/2020/ND-CP dated October 19, 2020;
• Document 43/2021/TT-BTC dated June 11, 2021;

According to the above documents, medical cotton is not on the list of goods prohibited from import. When importing this item, the following points must be noted:

• Medical cotton must be classified as medical equipment;
• When importing medical cotton, the goods must be labeled according to 43/2017/ND-CP;
• Correctly determine the HS code to determine the correct tax and avoid fines;

In addition, when importing medical equipment, the enterprise must be a registered medical equipment business enterprise. Not all enterprises can import medical cotton.

Above is the entire document regulating the procedure for importing medical cotton, if you do not fully understand the above documents. Please contact our hotline or hotmail for advice.

2. HS code for medical cotton

HS code is a series of codes used for all goods worldwide. Between different countries in the world, only the tail number is different. Therefore, the first 6 digits of the HS code worldwide for an item are the same. Here, Just In Time would like to introduce to you the HS code for medical cotton according to the cotton below:

According to the cotton above, the HS code for medical cotton is: 30059010. According to this HS code, the preferential import tax rate is 8%. Medical cotton belongs to the group of goods entitled to 5% VAT (subjects not subject to value added tax according to Circular 26/2015/TT-BTC dated February 27, 2015).

Determining the correct HS code is very important when carrying out procedures for importing medical cotton. Determining the wrong HS code will bring certain risks to you such as:

• Being fined for declaring the wrong HS code according to Decree 128/2020/ND-CP;
• In case of import tax, you will face a minimum penalty of VND 2,000,000 and a maximum penalty of 3 times the tax amount;

To learn more about special preferential tax for the type of medical cotton you import, please contact our hotline or hotmail for advice.

3. Medical cotton import tax

Import tax is an obligation that the importer must fulfill when carrying out medical cotton import procedures. Tax obligations are mandatory and goods are only cleared when tax obligations have been fulfilled. There are two types of import tax: VAT and import tax. Import tax depends on the HS code of the selected goods. How to calculate tax when doing medical cotton import procedures is as follows:

Import tax is determined by the import tax code calculated according to the formula:
Import tax = CIF value x % tax rate

Import VAT is determined according to the formula:
Value added tax = (CIF value + Import tax) x % VAT rate.

According to the above formula, it can be seen that the import tax on medical cotton depends on the applicable tax rate. The tax rate of medical cotton depends on whether the order has a certificate of origin or not. If there is a certificate of origin (℅), a special preferential tax rate can be applied.

The import tax rate on medical cotton is 8% and the VAT is 5%. To be able to apply a 5% VAT rate, a medical device declaration must be made.

4. Labeling imported goods

Labeling 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 monitored. Labeling of goods is intended to help administrative agencies manage goods, identify the origin and the unit responsible for the goods. Therefore, labeling goods is one of the indispensable steps when carrying out procedures for importing medical cotton from different countries.

4.1 Label content

In addition to labeling, the content of the label is also very important. The content of the labels of goods is stipulated in Decree No. 43/2017/ND-CP. For medical cotton products, the content of a complete label includes the following information:

• Information of the exporter (address, company name);
• Information of the importer (address, company name);
• Name of goods and information of goods;
• Origin of goods;

These are the basic label contents that need to be affixed to the goods. The information displayed must be in English or other languages ​​that must be translated. When carrying out import procedures for medical cotton, if a red line is encountered, the customs inspection will pay close attention to the label content above.

4.2 Location of labeling on goods

Labeling the goods is necessary, however, labeling in the right place is more important. When importing, the goods label needs to be affixed to the surfaces of the package such as: on the carton, on the wooden crate, on the product packaging. Or anywhere that is convenient to check and easy to see. Labeling in the right place will help save time in checking the goods when doing the procedures for importing medical cotton of all kinds.

For retail goods on the market, it is necessary to show more information. Such as manufacturer, quantity of goods, technical specifications, production date, safety warnings.

4.3 Risks encountered when not labeling

Labeling on goods is caught according to the provisions of law. If the goods are not labeled when imported or the content of the label is incorrect. The importer must face the following risks:

• Being fined according to regulations, the penalty level is specified in Article 22 of Decree 128/2020/ND-CP;
• Not enjoying special preferential import tax because the certificate of origin will be rejected;
• Goods are easily lost or damaged due to the lack of warning labels for loading, unloading and transportation;

With the above risks, we recommend that you label the goods when doing the procedures for importing medical cotton. If you do not fully understand the regulations on product labels, please contact the hotline or hotmail for advice.

5. Medical cotton import dossier

Documents for importing medical cotton in particular, and importing other goods in general. Regulated in Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by 39/2018/TT-BTC dated April 20, 2018.

• Customs declaration;
• Sale contract;
• Commercial invoice;
• Packing list;
• Bill of lading;
• Certificate of origin (if any);
• Medical equipment declaration dossier;
• Catalog (if any), and other documents if required by customs;

Above are all the documents used to carry out customs clearance procedures for medical cotton. The most important are the customs declaration, commercial invoice, bill of lading, medical equipment declaration file. Other documents will be supplemented if requested by the Customs authority.

Preparing documents before carrying out import procedures for medical cotton is extremely important. For original documents such as: Bill of lading, certificate of origin, the importer must request the seller to send them by express delivery in advance. Avoid waiting for documents, which can lead to container storage and storage of goods.

If you do not fully understand the documents listed above, you can contact our hotline or hotmail for advice.

6. Procedures for importing medical cotton

The procedure for importing medical cotton is the same as for many other items. Very specifically regulated in Circular 38/2015/TT-BTC dated March 25, 2015, amending and supplementing 39/2018/TT-BTC dated April 20, 2018. We summarize the short description steps so that you can visualize the whole picture.

Step 1: Make a medical device classification announcement
Details on making a medical device classification announcement for medical cotton. We have a separate article at the link described above, you can go back to read it again.

Step 2. Declare customs declaration
After having complete import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, medical device classification results, notification of arrival of goods and determining the HS code of medical cotton. Then you can enter the declaration information into the customs system via the software.

Declare customs declaration on customs software. Requires importers to have knowledge of data entry into the software. Do not arbitrarily declare customs declarations when you do not fully understand this work. Arbitrary declarations can cause errors that cannot be corrected on the customs declaration. At that time, it will cost a lot of money and time to fix.

Within 30 days from the date the goods arrive at the port, the customs declarant must declare the customs declaration. If this deadline is exceeded, the importer will face a penalty fee from the customs.

This is the most important step in the process of importing medical cotton. All declaration contents will be pushed to the customs system. If there are errors affecting the tax or origin of the goods. The importer may face penalties according to customs law. Therefore, it is necessary to pay attention to the information entered on the declaration such as HS code, tax rate, product name, origin.

Step 3. Open the customs declaration
After completing the customs declaration, the customs system will return the declaration classification results. If there is a declaration classification, print the declaration and bring the import documents to the customs branch to open the declaration. Depending on the green, yellow, or red classification, perform the steps to open the declaration.

The declaration must be opened as soon as possible, no later than 15 days from the date of declaration. The declarant must bring the documents to the customs branch to open the customs declaration. After 15 days, the declaration will be canceled and you will face a penalty fee from the customs.

Step 4. Clear the goods
After checking the documents, if there are no questions, the customs officer will accept the declaration. You can now pay import tax on the customs declaration to clear the goods.