
1. Diesel engine import policy
The process of carrying out procedures for importing diesel engines is regulated by the following legal documents:
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Decree No. 127/2007/ND-CP dated 01/08/2007;
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Decision 04/2017/QD-TTg dated 09/03/2017;
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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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Circular 08/2019/TT-BKHCN dated 25/09/2019;
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Decision No. 2711/QD-BKHCN dated 30/12/2022;
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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 documents, diesel engines are not on the list of goods banned from import. However, when carrying out procedures for importing diesel engines, it is necessary to pay attention to the following points:
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Used diesel engines with an equipment age of less than 10 years are allowed to be imported;
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When importing transformers, they 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;
Above are all legal regulations related to the procedure for importing diesel engines. If you do not fully understand the above processes, please contact the hotline or hotmail for advice.
2. Diesel engine HS code lookup
Determining the HS code is the most important step when clearing the import of diesel engines. Identifying the hs code will determine import duties, VAT, and import policies. In order to determine the correct diesel engine HS code, you need to understand the characteristics of the product: Material, composition and characteristics of the product.
2.1 Diesel engine HS code
Looking up the hs code is the first task when checking in for diesel engine imports. Checking the correct HS code will determine the import tax and import policy. The following is the diesel engine hs code plate.
HS Code
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Description
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84081000
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Diesel engines for ships
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84082010
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Diesel engines for passenger cars
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84082020
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Diesel engines used for trucks, tractors, other means of transport
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84089010
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Diesel engines used for agricultural machinery, construction machinery
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84089020
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Diesel engines for generators
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84089090
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Diesel engines of other types (not in the above groups)
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2.2 Risks of applying the wrong HS code
Identifying the correct HS code is very important when carrying out the procedure for importing diesel engines. 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 each specific type of diesel engine. Please contact the hotline or hotmail for advice.
3. Diesel Import Tax
Determining import taxes is an important task when carrying out diesel 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 taxes on diesel engine products.
3.1 How to calculate diesel import tax
Diesel 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 diesel import taxes
When determining the import tax on diesel engines, the following points must be taken into account:
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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%;
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To enjoy preferential tax rates, a certificate of origin is required;
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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;
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Import taxes will also be subject to VAT;
Those are the notes when calculating diesel import taxes. If you don't understand how taxes are calculated and the notes above. Please contact the hotline or hotmail for advice.
4. Dossier of procedures for import of diesel engines
The set of dossiers for importing diesel engines in particular, carrying out procedures for importing 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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Sale contract;
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Packing list;
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Commercial invoices;
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Certificate of origin (C/O);
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Bill of lading;
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Catalog (if any);
Above are all documents used to carry out procedures for importing diesel engines. The most important are customs declarations, commercial invoices, bills of lading. Other documents will be supplemented if requested by the customs office.
Preparing documents before importing diesel engines is extremely important. For original documents such as bills of lading, certificates of origin, the importer must request the seller to deliver the express in advance. Avoid waiting for documents, which can lead to container storage and cargo storage.
5. Procedures for importing diesel engines
The process of carrying out procedures for importing diesel engines is very specific 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 the diesel engine 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 importers to have an understanding of declaring on the software. You should not file a customs declaration on your own without a clear understanding of the job. Arbitrary declaration can be easily attached to uncorrectable points 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 procedure for importing diesel engines. 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 diesel engines. 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 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. Bringing goods for preservation and use
of customs clearance declarations, the declaration liquidation step is carried out and necessary procedures are carried out to bring goods to the warehouse. To be able to bring goods to the warehouse, you need to prepare a delivery order in advance, a pick-up slip at the port and arrange a pick-up vehicle. Avoid the situation that the declaration has been completed but there is an order from the shipping line to take the goods out of the port.
Above is the process of procedures for importing diesel engines. If you do not understand the steps of the process, please contact us via hotline or hotmail for advice.
6. Notes when importing diesel engines
In the process of importing diesel engines for customers. Door to Door Viet has learned the following experiences, please share them with you for reference. When importing diesel engines, the following should be noted:
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Import tax is an obligation to be fulfilled to the state;
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When importing, 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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It is recommended to buy insurance for goods;
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Prepare a complete import dossier in accordance with the provisions of law;
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Clearly identify the importer and the risks in payment;
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.
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