Procedures for importing plastic drawstring, stainless steel drawstring

1. Policy on import of plastic and stainless steel drawstrings

The process, procedures and policies on import of plastic and stainless steel drawstrings are specified in the following legal documents:

• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Decree 69/2018/ND-CP dated 15/05/2018;
• Decree No. 15/2018/ND-CP dated 02/02/2018;
• Decision No. 583/QD-TCHQ dated 22/03/2019;

According to the above-mentioned legal documents. Plastic drawstrings and stainless steel drawstrings are not on the list of goods banned from import and export. Procedures for importing plastic drawstrings and stainless steel drawstrings of all kinds will proceed normally like other items. For used goods, they are imported in the form of scrap and must have an import permit.

The most important thing when carrying out procedures for importing plastic drawstrings or stainless steel drawstrings is to determine the HS code. Therefore, determining the correct hs code can determine VAT, import tax, import policies and procedures for importing plastic drawstrings and stainless steel drawstrings.

2. HS code of drawstring of all kinds

Determining the HS code is the most important step when carrying out procedures for importing plastic and stainless steel drawstrings. Identifying the HS code will determine the import tax, VAT and import policy. To identify the correct HS code, you need to understand the characteristics of the goods: Material, composition and characteristics of the product.

2.1 Drawstring hs code

HS (Harmonized System) code is a series of codes that are common to all goods around the world. Between different countries in the world, there is only a difference in the number of tails. Therefore, the first 6 digits of the worldwide hs code for an item are the same. Here, Just In Time Viet would like to share with you the code table of plastic and stainless steel drawstrings.

Above is a summary table of retractable hs codes of all types. According to the table above, it can be seen that the HS code of drawstring is classified based on the substrate material to make products such as plastic and stainless steel. According to the import and export tariffs, the preferential import tax of stainless steel drawstrings is 10% and plastic drawstrings are 12% and VAT is 8% or 10%.

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out procedures for importing plastic drawstrings and stainless steel drawstrings. Identifying the wrong hs code will bring certain risks to you such as:

• Delay in customs procedures: Incorrect declaration of HS codes can lead to delays in customs procedures, as it takes time to check and verify accurate information about the type of goods;
• Shall be fined for incorrectly declaring hs codes 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 business;
• 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 the specific type of plastic drawstring. Please contact the hotline or hotmail for advice.

3. Import tax on drawstrings of all kinds

Import tax is an obligation that the importer must fulfill with the state. There are two types of import tax on drawstrings, namely import tax and import VAT. The import tax of plastic drawstring, stainless steel depends on the hs code selected in the upper part. The tax calculation method when carrying out procedures for importing plastic and stainless steel drawstrings of all kinds is as follows:

Import tax determined according to the import tax hs code 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 rate

According to the above formula, it can be seen that the import tax on plastic and stainless steel drawstrings depends on the tax rate according to the HS code. In order to get the lowest and most accurate tax rate, it is necessary to correctly determine the hs code of plastic drawstring and stainless steel drawstring. Besides, it also depends on whether the shipment has a certificate of origin or not, to enjoy a special preferential tax rate.

For goods imported from countries such as Europe, India, Australia, Chile, China, South Korea, Japan, Asean countries. The importer should ask the seller to provide him with a certificate of origin to enjoy the lowest import tax rate on plastic drawstrings and stainless steel drawstrings.

4. Dossier of import of drawstrings of all kinds

The dossier for carrying out procedures for importing plastic drawstrings and stainless steel drawstrings of all kinds includes the following documents:

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

Above are all documents used for customs clearance procedures for plastic and stainless steel drawstrings. The most important are customs declarations, commercial invoices, bills of lading, certificates of origin. Other documents will be supplemented if requested by the customs office.

If you do not have a picture of the dossier to prepare for the procedure of importing plastic drawstrings. Please contact our company's hotline or hotmail for advice.

5. Procedures for importing plastic drawstrings

The process of procedures for importing plastic drawstrings of all kinds includes the following steps:

Step 1. Declaration of customs declaration
After having all import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival of goods and identification of hs code of plastic and stainless steel drawstring. Then the declared information can be entered into the customs system via software.

The declaration of customs declarations on customs software. Importers are required to have an understanding of data entry into the software. Customs declarations should not be filed on your own when you are not familiar with the job. The self-declaration may be wrong in 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 declare the customs declaration. If this time limit is exceeded, the importer must face a fine fee from the customs side.

This is the most important step in the process of carrying out procedures for importing plastic drawstrings. Misdeclaration of enterprises will face fines on taxes and origin according to the customs law.

Step 2. Open the customs declaration
After completing the customs declaration, 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, no later than 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 more than 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 plastic drawstrings. It is not recommended to leave the declaration for a long time before bringing it down for import procedures.

Step 3. Customs clearance of goods
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 the customs declaration to clear the goods.

The opening of the declaration must be carried out as soon as possible, no later than 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 more than 15 days, the declaration will be cancelled and you will face a penalty fee from customs.

In some cases, the declaration will be released to bring the goods to the warehouse for pre-storage. After completing the dossier, the customs will proceed to customs clearance of the customs declaration. When the declaration has not yet been cleared, it is necessary to carry out procedures for customs clearance. If you are past the deadline, you will face a penalty fee and it will take a lot of time.

Step 4. Bringing goods for preservation and use
of customs clearance declarations, liquidation of declarations and carrying out necessary procedures to bring goods to warehouses. In order to be able to pick up your goods smoothly, you need to have a full release order, a means of transport and an accepted order for the goods to pass through the monitoring area.

Above are the four basic steps to carry out procedures for importing plastic and stainless steel drawstrings. If you do not understand the process, please contact the hotline or hotmail for advice.

6. Notes when carrying out procedures for importing drawstrings

When carrying out procedures for importing drawstrings, it is necessary to pay attention to the following points:

• Import tax is an obligation that must be fulfilled with the state;
• Drawstring VAT is usually 8% or 10%;
• It is recommended to prepare documents before importing goods. Avoid storage and storage that incur costs;
• Used drawstrings are not allowed to be imported. If imported, in the form of scrap, a license is required;

If you have difficulties in customs clearance, 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

Address: No. 5, Dong Da, Tan Son Hoa Ward, Ho Chi Minh City.

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