Electric motor import procedures

Posted on: 17/12/2024

In this article, Just In Time would like to share with you the procedures for importing electric motors, determining HS codes, calculating import taxes and notes when importing this item into Vietnam.

1. Electric motor import policy

The procedures for importing electric motors are regulated by the following legal documents:

According to the above legal documents, electric motors are not on the list of prohibited import goods. Used motors are also not on the list of prohibited import goods. However, when importing used electric motors, the procedures must be carried out according to the provisions of Circular 18/2019/QD-TTg. When carrying out procedures for importing electric motors, the following points must be noted:

Used electric motors must have an age of less than 10 years;
When importing transformers, the goods must be labeled according to 43/2017/ND-CP;
Correctly identify the HS code to determine the correct tax and avoid fines.

Above are all the legal regulations related to the procedures for importing electric motors. If you do not fully understand the above procedures, please contact the hotline or hotmail for advice.

2. Determine the HS code of the electric motor

Determining the HS code is the most important step when carrying out the procedures for importing electric motors. Determining the HS code will determine import tax, VAT and import policy. To correctly determine the HS code of the electric motor, you need to understand the characteristics of the goods: Material, composition and characteristics of the product.

2.1. HS code of electric motors

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 numbers of the HS code worldwide for an item are the same. Below, Door to Door Viet would like to share with you the HS code table of electric motors.

HS Code	Description
	Motor power not exceeding 37.5W
	for DC, stepper motor:
85011021	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85011022	Other, power not exceeding 5 W
85011029	Other
85011030	For DC, axial motor
	Other types of DC:
85011041	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85011049	Other
	AC, stepper motor:
85011051	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85011059	Other
85011060	AC, axial motor
	Alternating current, other type:
85011091	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85011099	Other
	Power over 37.5 W to 1KW, DC/AC universal motor
85012012	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85012019	Other
	Power over 1 kW, universal DC/AC motor:
85012021	For use with articles of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85012029	Other
	Other DC motors with a power over 37.5 W but not exceeding 750 W:
85013130	Motors of a kind used for goods of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85013140	Other engines
	Electric motors with a power exceeding 750W but not exceeding 37.5 kW:
85013221	Motors of a kind used for goods of heading 84.15, 84.18, 84.50, 85.09 or 85.16
85013222	Other engines

2.2. Risks of applying the wrong HS code

Determining the correct HS code is very important when carrying out procedures for importing electric motors. 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.
Penalty 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 penalty of 3 times the tax amount.

To determine the exact HS code for a specific type of electric motor. Please contact the hotline or hotmail for advice.

3. Electric motor import tax

Determining import tax is an important task when carrying out procedures for importing electric motors. The import tax of goods depends on the HS code of that 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 tax for electric motors.

3.1. How to calculate electric motor import tax

Electric motor import tax is calculated according to the same formula as other items. Import tax for 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 calculated into the cost of goods sold of the order. Therefore, you must check the correct HS code to apply the best import tax code.

3.2. Notes when determining electric motor import tax

When determining the import tax of electric motors, you need 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 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 on electric motors. If you do not understand how to calculate tax and the above notes. Please contact the hotline or hotmail for advice.

4. Electric motor import dossier

The dossier for import procedures for electric motors (motors) in particular, and other items in general. Stipulated in Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by 39/2018/TT-BTC dated April 20, 2018.

Import declaration
Bill of lading
Commercial invoice
Packing list
Certificate of origin (℅) if any
Sales contract
Energy labeling declaration (if the imported motor is of the type that must be declared).
Conformity registration form (for used motors)
Catalog (if any)

For the above documents, when carrying out procedures for importing electric motors, the most important documents are the customs declaration, certificate of origin (if any), commercial invoice, registration paper and performance test certificate. The remaining documents will be supplemented when the customs officer requests more. The certificate of origin (℅) is very important in determining whether the item is entitled to special preferential tax rates or not. When importing, you should ask the seller to provide ℅.

5. Types of electric motors that must have energy labels

You can see below the types of motors that need and do not need energy labels:

Imported electric motors that need energy labels:

Three-phase asynchronous motors with single-speed squirrel-cage rotors using a power source with a frequency of 50 Hz and/or 60 Hz and:
With a rated voltage UN up to 1 000 V
With a rated output power PN from 0.75 kW to 150 kW
With 2, 4 or 6 poles
Operating in mode S1 (continuous mode)
Working directly on the grid
Able to operate under the working conditions stated in Article 6 of TCVN 6627-1 (IEC 60034-1)

Note: must meet all the above characteristics to be able to have energy labels

Imported electric motors that do not need energy labels:

Motor with built-in gearbox (cannot be disassembled without damaging the motor);
Motors specifically designed for use with power converters according to IEC 60034-25.
Motors completely integrated into a machine (e.g. pumps, fans and compressors) which cannot be tested separately from that machine.
Motors specifically designed for operation in explosive atmospheres according to IEC 60079-0.
Motors specifically designed for the special requirements of the driven machine (heavy starting, large number of start/stop cycles, very low rotor inertia).
Motors specifically designed for certain special characteristics of the mains supply (e.g. limited starting current, large tolerances on voltage and/or frequency).
The motor is specially designed for special environmental conditions (not included in the working conditions specified in Article 6 of TCVN 6627-1 (IEC 60034-1).
And electric motors that do not fully meet the factors as stated above must have an energy label

6. Procedures for importing electric motors

For goods with minimum energy efficiency testing, you can prepare a performance test registration file in advance to get a test certificate. For goods that must be tested for product age, it will be done in parallel with the import procedures for used electric motors.

Step 1. Declare customs declaration

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

Declaration 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 electric motors. If the declaration is incorrect, the enterprise will face penalties for taxes and origin according to customs law.

Step 2. Open the customs declaration

After completing the customs declaration, the customs system will return the declaration flow results. If there is a declaration flow, print the declaration and bring the import documents to the customs office to open the declaration. Depending on the green, yellow, and red lanes, the steps to open the declaration are performed.

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.

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

Step 3. Clearing 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

The customs declaration will proceed to the step of clearing the declaration and doing the necessary procedures to bring the goods to the warehouse. To be able to get the goods conveniently, you need to fully prepare the release order, means of transport and goods accepted to pass through the surveillance area.

Above are the four steps to carry out the procedures for importing electric motors. If you do not understand or have questions, please contact the hotline or hotmail for advice.

7. Notes when importing electric motors

When carrying out the procedures for importing electric motors (motors), you need to note the following points:

Electric motors are attached to the machine, the import procedures will follow the main machine.
Goods are only cleared after completing tax obligations to the state.
When importing electric motors, the goods must be labeled according to 43/2017/ND-CP;
Determine the correct HS code to determine the correct tax and avoid fines.
Check energy efficiency and quality, then register for a model that can be used for a long time, usually 3 years.
Check the conformity of old machines, then check for each specific order, each import must be checked.

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.