Procedures for importing electric wires

Posted on: 04/12/2024

Just In Time would like to share about the procedures for importing electric wires and cables, determining HS codes, calculating import taxes and notes when importing electric wires into Vietnam.

1. Electric wire import policy

The policy and procedures for importing electric wire are stipulated in the following legal documents:

According to the above documents, electric wire is not on the list of goods prohibited from import into Vietnam. However, when carrying out procedures for importing electric wires, the following points must be noted:

Electric wires that have been banned from import into Vietnam;
Low voltage wires and cables with voltages from 50v to 1000v must be inspected for quality upon import;
It is necessary to accurately determine the HS code of the electric wire to avoid applying the wrong HS code;
It is necessary to have a product label and a product origin label when importing goods.

2. 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 goods aims 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 electric wires.

2.1. Label content

In addition to labeling, label content is also very important. The label content of the goods is regulated in Decree No. 43/2017/ND-CP. For electrical wire 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 shown must be in English or other languages that must be translated. When carrying out import procedures for electrical wire, if a red line is encountered, customs inspection will pay close attention to the label content above.

2.2. Labeling position on goods

Affixing labels to goods is necessary, but affixing them in the right position is more important. When importing, the product label must 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 position will help save time for inspection when doing procedures to import electrical wires of all kinds.

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

2.3. 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 entitled to 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 electric wires. If you do not fully understand the regulations on product labels. Please contact the hotline or hotmail for advice.

3. Determine the HS code for imported electric wires

Determining the HS code is the most important step when doing the procedures for importing electric wires and cables. Determining the HS code will determine import tax, VAT and import policy. To determine the correct HS code, you need to understand the characteristics of the goods: Material, composition and characteristics of the product.

3.1. HS code for electric wires and cables

The HS code (Harmonized System) 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. Below, Door to Door Vietnam would like to share with you the HS code table for electric wires and cables.

HS code	Description
	HS code for single coil copper wire:
85441120	With an outer coating or cover of paper, textile, or poly(vinyl chloride)
85441130	With an outer lacquer coating
85441140	With an outer enamel coating
85441190	Other
85441900	Other types of single-coil wires
	HS Code Coaxial cable and other coaxial electric conductors, insulated cables fitted with connectors, for a voltage not exceeding 66 kV:
85442011	Insulated with rubber or plastic
85442019	Other
	HS Code Coaxial cable and other coaxial electric conductors, insulated cables not fitted with connectors, for a voltage not exceeding 66 kV:
85442021	Insulated with rubber or plastic
85442029	Other
	HS code for insulated electric wires and cables fitted with connectors, for voltages above 66 kV:
85442031	Insulated with rubber or plastic
85442039	Other
	HS code for insulated electric wires and cables not fitted with connectors, for voltages above 66 kV:
85442041	Insulated with rubber or plastic
85442049	Other
	HS Code of electric wire, electric wire sets for motor vehicles, insulated with rubber or plastic:
85443012	For vehicles in categories 87.02, 87.03, 87.04, or 87.11
85443013	Other
	HS code of electric wire, electric wire set for motor vehicles, other types.
85443014	For vehicles in categories 87.02, 87.03, 87.04, or 87.11
85443019	Other
	Fitted with an electrical connector, for telecommunications, for a voltage not exceeding 80 V:
85444211	Submarine telephone cables, telegraph cables, or radio relay cables
85444213	Other types insulated with rubber, plastic, or paper
85444219	Other
	HS code of electric wire, fitted with electrical connectors, for telecommunications, of a voltage exceeding 80 V but not exceeding 1,000 V
85444221	Submarine telephone cables, telegraph cables, or radio relay cables
85444223	Other types insulated with rubber, plastic, or paper
85444229	Other
85444294	Plastic-insulated cables with core diameter ≤ 5 mm
85444295	Plastic-insulated cables with core diameter > 5 mm but ≤ 19.5 mm
85444296	Other plastic-insulated cables
85444297	Cables insulated with rubber or paper
85444298	Flat data cables with two or more conductors
85444299	Other
	HS code for electric wire, used for telecommunications, voltage not exceeding 80 V:
85444911	Submarine telephone cables, telegraph cables, or radio relay cables
85444913	Other types insulated with rubber, plastic, or paper
85444919	Other
	HS code of electric wire, not used for telecommunications, voltage not exceeding 80 V:
85444921	Single-core shielded wires for automotive wire harness production
85444922	Plastic-insulated cables with core diameter ≤ 19.5 mm
85444923	Other plastic-insulated cables
85444924	Other types insulated with rubber, plastic, or paper
85444929	Other
	For telecommunications, voltage above 80 V but not exceeding 1,000 V:
85444931	Submarine telephone cables, telegraph cables, or radio relay cables
85444932	Other types insulated with plastic
85444939	Other
	Not for telecommunications, voltage above 80 V but not exceeding 1,000 V:
85444931	Plastic-insulated cables
85444932	Other types insulated with rubber, plastic, or paper
85444939	Other
	HS codes for other electric conductors, for voltages above 1000 V, for voltages above 1 kV but not exceeding 36 kV:
85446011	Plastic-insulated cables with core diameter < 22.7 mm
85446012	Other types insulated with rubber, plastic, or paper
85446019	Other
	HS codes for other electric conductors, for voltages above 1000 V, for voltages above 36 kV but not exceeding 66 kV:
85446021	Plastic-insulated cables with core diameter < 22.7 mm
85446022	Other types insulated with rubber, plastic, or paper
85446029	Other
	HS codes for other electric conductors, for voltage above 1000 V, for voltage above 66 kV:
85446031	Insulated with rubber, plastic, or paper
85446039	Other

3.2. Risks of applying the wrong HS code

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

Delay in customs procedures: Declaring the wrong HS code can lead to delays in customs procedures, due to the time needed to check and verify accurate information about the type of goods.
Be fined for declaring the wrong HS code according to Decree 128/2020/ND-CP;
Delayed delivery: If the goods are found to have declared the wrong HS code, the customs authority may request correction or clarification of information. This can lead to delays in the delivery process and affect the production and business cycle of the enterprise.
In case of import tax, you will face a penalty of at least 2,000,000 VND and a maximum fine of 3 times the tax amount.

To determine the exact HS code for electric wires and cables. Please contact the hotline or hotmail for advice.

4. Import tax on electric wires

Import tax is an obligation that the importer must fulfill when carrying out procedures to import electric wires and cables. 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 import tax is as follows:

4.1. How to calculate import tax on electric wires and cables

Import tax on electric wires is calculated according to the same formula as other items. Import tax on this item has two types: import tax and import VAT.

Import tax determined by HS code Import tax is 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.

CIF value is determined by the factory value of the goods plus all costs to bring the goods to the first border gate of the importing country. Import tax is the cost included in the cost of goods sold of the order. Therefore, you must check the correct HS code to apply the best import tax code.

4.2. Notes when determining import tax on electric wires

When determining import tax on electric wires and cables, you need to note 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 important to note that the special preferential tax rate is usually 0%.
To enjoy the preferential tax rate, a certificate of origin is required;
The taxable value is the CIF value. For orders purchased under other conditions. When calculating import tax, the value must be converted to the CIF value to calculate import tax.
Import tax will also be subject to VAT.

These are notes when calculating import tax in the process of importing electric wires and cables. If you do not understand how to calculate tax and the above notes. Please contact the hotline or hotmail for advice.

5. Documents for importing electric cables

Documents for importing electric wires in particular, and importing other items in general. Stipulated in Circular 38/2015/TT-BTC dated March 25, 2015; Amendment and supplement 39/2018/TT-BTC dated April 20, 2018. The import dossier includes:

Customs declaration
Commercial invoice
Bill of lading
Packing list
Sale contract
C/O, catalog (if any);
Import goods quality inspection dossier.

In the above dossier, the following documents are the most important: Customs declaration, bill of lading, commercial invoice and quality inspection registration dossier for electric cables subject to inspection. Other documents will be supplemented when requested by customs.

For quality inspection dossiers, registration will be carried out on the national single window page. The registration dossier must prepare the necessary documents in advance. The quality inspection results are also uploaded to the national single window system. Quality inspection is only applicable to electric wires with voltage from 50v to 1000v.

If you do not fully understand the documents for importing electric wires. Please contact us via hotline or hotmail for advice.

6. Register for quality inspection of electric wires

When carrying out import procedures for electric cables, they must register for quality inspection as prescribed in Decision No. 2711/QD-BKHCN dated December 30, 2022. The quality inspection registration file can be made on paper or on the national single window information portal.

Here, Just in Time will introduce to you the steps to register for quality inspection of electric wires on the national single window system.

Step 1: Create an account and register a file
Creating an account on the national single window page is the first step when registering for quality inspection. To create an account on the national single window page, you must access the website https://vnsw.gov.vn. Enter data according to the available information boxes to create an account.

After having an account, you can register on the national single window page. In the management section of the Ministry of Science and Technology. When registering the application, the Department of Standards, Metrology and Quality will be the unit receiving the application. You must choose the sample testing unit, the sample testing unit licensed by the Ministry of Science and Technology. Registration and account can be done before completing the procedures for importing electric wires. It is recommended to create an account in advance because it usually takes 24 hours for the account to be accepted.

Step 2: Take samples and check quality
After having the quality testing registration number. Customs can clear the goods. Sampling for quality testing can be done at the port or at the importer's warehouse. Samples will be taken according to regulations for quality testing. Quality testing time according to TCVN. Depending on the laboratory, it usually takes 2-3 days to have the test results.

Step 3: Receive results and upload results to the national single window
When the quality testing results are available, the importer or the sample testing unit can upload the results to the national single window system. After the results are available, the Department of Standards and Metrology will accept or reject the registration application. Above are the three basic steps to register for quality inspection of electric cables. If you do not understand the quality inspection registration process, please contact the hotline or hotmail for advice.

7. Procedures for importing electric wires

The procedure for importing electric wires is the same as for many other items. It is very specifically regulated in Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented by 39/2018/TT-BTC dated April 20, 2018. We summarize the steps briefly so that you can visualize the whole picture.

Step 1: Declare customs declaration
After having all the import and export documents: Contract, commercial invoice, packing list, bill of lading, certificate of origin, notice of arrival and determining the HS code of electric cables. Then you can enter the declaration information into the customs system via the software.

Declaring customs declarations on customs software. Requires the importer to have knowledge about entering data into the software. You should not declare customs declarations on your own when you do not fully understand this work. Declaring on your own can easily 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 electric wires. All declaration content 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 2: 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 office to open the declaration. Depending on the green, yellow, red classification, perform the steps to open the declaration.

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

Note: After having the official declaration, you need to contact the customs office to carry out the procedures for importing electric wires. Do not leave the declaration for a long time before bringing it down to carry out the import procedures.

Step 3: Clear the customs declaration

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.

In some cases, the declaration will be released to bring the goods to the warehouse for storage first. After completing the documents, the customs will proceed to clear the customs declaration. When the declaration has not been cleared, it is necessary to carry out the procedures for the declaration to be cleared. If it is overdue, you will face a penalty fee and it will take a lot of time.

Step 4: Bring the goods to the warehouse for storage and use

For the customs declaration, proceed to the declaration liquidation step and do the necessary procedures to bring the goods to the warehouse. To be able to bring the goods to the warehouse, you need to prepare the delivery order, the port pick-up form and arrange the means to pick up the goods. Avoid the situation where the declaration is completed but there is an order from the shipping line to take the goods out of the port. Sampling to check the quality of electric wires. Can be done at the port or at the importer's warehouse.

If you have difficulty with customs procedures, you can choose Just In Time as your companion.

Just In Time's staff is always enthusiastic to support you to handle your work quickly and professionally.