Chemical import procedures

Posted on: 20/11/2024

There are many different types of chemicals and they are used for many different purposes in life and industrial production. Chemicals are imported in many forms, which can be compounds or single substances. To be able to import this aspect smoothly, the importer must have knowledge of foreign trade and understanding of customs laws. In this article, JIT would like to share the process of chemical import procedures, determine HS codes and calculate chemical import taxes.

I. Import policy

The procedures for importing chemicals of all types are stipulated in the following legal documents:

According to the above documents, there are many different types of imported chemicals and a license must be applied for for each type. Imported chemicals must be declared to the Ministry of Industry and Trade. This declaration is considered as applying for an import license for that type of chemical. Therefore, when importing chemicals, it is necessary to determine the following issues:

Chemicals in Appendix I of Decree No. 113/2017/ND-CP, chemicals subject to conditional business;
Imported chemicals in Appendix V of Decree No. 113/2017/ND-CP must be declared;
Are imported chemicals on the list of management of the Ministry of Health or not?

Chemicals under different management ministries will have different import procedures. Above are all the regulations on chemical import procedures. If you do not understand the documents, please contact the hotline or hotmail for advice.

II. 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 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 chemicals from different countries.

1. Label content

In addition to labeling, the label content is also very important. The label content of goods is regulated in Decree No. 43/2017/ND-CP. For all types of chemical 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 chemical import procedures, if a red line is encountered, the customs inspection will pay close attention to the content of the label above.

2. Location of labeling on goods

Affixing labels to goods is necessary, but affixing them in the right location is more important. When importing, the label needs to be affixed to the surfaces of the package such as: On cartons, on wooden crates, on product packaging. Or anywhere that is convenient to check and easy to see. Labeling in the right place will help save time when checking the import procedures of all kinds of chemicals.

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

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:

Be 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 chemicals of all kinds. If you do not fully understand the regulations on product labels. Please contact the hotline or hotmail for advice.

III. Determining the HS code of all kinds of chemicals

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

1. HS code of chemicals

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, JIT would like to share with you the HS code table of chemicals.

Mã hs	Mô tả
	Inorganic Acids and Oxygen-Containing Inorganic Compounds of Nonmetals
2806	Hydrochloric acid (hydrogen chloride); chlorosulfuric acid.
2809	Diphosphorus pentoxide; phosphoric acid; polyphosphoric acids, whether chemically defined or not.
2811	Other inorganic acids and other inorganic oxygen-containing compounds of nonmetals.
	Halogen or Sulfide Compounds of Nonmetals
2812	Halides and halogen oxides of nonmetals.
2813	Sulfides of nonmetals; commercial phosphorus trisulfide.
	Bases and Inorganic Oxides, Hydroxides, and Peroxides of Metals
2814	Ammonia, whether anhydrous or in aqueous solution.
2815	Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); sodium or potassium peroxide.
2816	Magnesium hydroxide and magnesium peroxide; oxides, hydroxides, and peroxides of strontium or barium.
2817	Zinc oxide; zinc peroxide.
2818	Artificial corundum, whether chemically defined or not; aluminum oxide; aluminum hydroxide.
2819	Chromium oxides and hydroxides.
2820	Manganese oxides.
2821	Iron oxides and hydroxides; earth colors containing 70% or more by weight of combined iron as Fe₂O₃.
	Salts and Peroxides of Inorganic Acids
2826	Fluorides; fluorosilicates, fluoroaluminates, and other complex fluorine salts.
2827	Chlorides, chloride oxides, and chloride hydroxides; bromides and bromine oxides; iodides and iodine oxides.
2828	Chlorides, chloride oxides, and chloride hydroxides; bromides and bromine oxides; iodides and iodine oxides.
2829	Chlorates and perchlorates; bromates and perbromates; iodates and periodates.
2830	Sulfides; polysulfides, whether or not chemically defined.
2831	Dithionites and sulphoxylates.
2832	Sulfites; thiosulfates.
2833	Sulfates; alums; peroxosulfates (persulfates).
2834	Nitrites; nitrates.
2835	Phosphinates (hypophosphites), phosphonates (phosphites), and phosphates; polyphosphates, whether or not chemically defined.
2836	Carbonates; peroxocarbonates (percarbonates); commercial ammonium carbonate containing ammonium carbamate.
2837	Cyanides, cyanide oxides, and complex cyanides.
2839	Silicates; commercial alkali metal silicates.
2840	Borates; peroxoborates (perborates).
2841	Salts of oxometallic or peroxometallic acids.
2842	Other salts of inorganic or peroxoacids (including chemically defined aluminum silicates).
	Hydrocarbons and Halogenated, Sulfonated, Nitrated, or Nitrosated Derivatives
2901	Acyclic hydrocarbons.
2902	Cyclic hydrocarbons.
2903	Halogenated derivatives of hydrocarbons.
2904	Sulfonated, nitrated, or nitrosated derivatives of hydrocarbons, whether or not halogenated.

2. Risks of applying the wrong HS code

Determining the correct HS code is very important when carrying out chemical import procedures. 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 chemical. Please contact the hotline or hotmail for advice.

IV. Chemical import tax

Determining import tax is very necessary when carrying out chemical import procedures. Because import tax is an obligation that the importer must fulfill to the state. There are two types of import tax on chemicals: import tax and import VAT. To determine the import tax on chemical HS codes, please refer to the following tax calculations:

Import tax determined by HS codes, import tax is calculated according to the formula:

Import tax = CIF value x % import tax rate

Import VAT is determined according to the formula:

Value added tax = (CIF value + Import tax) x VAT rate.

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.

According to the above calculation, import tax depends on the HS code of the selected chemicals. There are two types of tax rates: preferential import tax and special preferential import tax.

Special preferential tax rates apply to goods imported from countries and territories with which Vietnam has signed trade agreements such as: China, Japan, Korea, ASEAN countries, India, Australia, Europe, Chile. To apply for special preferential import tax rates, a certificate of origin is required. Therefore, when importing goods from the above countries, the buyer should request the seller to provide a certificate of origin.

V. Documents for chemical import procedures

Documents for chemical import procedures in particular, and for 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;
Bill of landing;
Certificate of origin (C/O) if any;
Packing list;
Commercial invoice;
Sale contract
MSDS.

In the above set of documents for chemical import procedures, the following documents are the most important: Customs declaration, commercial invoice, bill of lading. Chemicals that require chemical declaration require an MSDS. Other documents must be provided upon request from customs.

A certificate of origin is not a mandatory document. However, to enjoy a special preferential import tax rate, the buyer should request the seller to provide it. The special preferential import tax rate is usually 0%. If you do not fully understand the above documents, please contact the hotline or hotmail for advice.

VI. Chemical declaration

Chemical declaration is mandatory for chemicals listed in Appendix V of Decree No. 113/2017/ND-CP. Chemical declaration is an indispensable step in the chemical import procedure. The following are the steps to declare chemicals.

Step 1: Register an account

To be able to declare chemicals, you must register an account on the national single window portal https://vnsw.gov.vn/. Register online after 2 hours, the account will be approved at the latest the next day. Chemical declaration must be carried out as soon as possible after receiving the customs declaration. Avoid delaying the situation, which will lead to additional time for customs procedures.

Step 2: Chemical declaration

To declare chemicals, you must prepare the following documents: Contract, commercial invoice, packing list, bill of lading, MSDS. These documents are used to attach to the declaration file. Chemical declaration is very simple, just select the chemical declaration section and enter the necessary information as required. There will be blank fields, just fill in the information and you're done.

Step 3: Wait for feedback and receive results

After the application is submitted, the Department of Chemicals will check and approve the application. If the application is missing, there will be a request for additional documents until all documents are complete and the import is confirmed.

Normally, the response time from the Department of Chemicals is quite fast, about 2 hours, the latest is the next day to have the results.

VII. Procedures for chemical import procedures

The procedure for chemical import procedures in particular and the procedure for import procedures for other goods in general. Are specified in Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018. The following are the steps for chemical import procedures:

Step 1: Declare customs declaration

After having complete import and export documents: Contract, commercial invoice, packing list, bill of lading, certificate of origin, notice of arrival and determining the chemical HS code. You can enter the declaration information into the customs system via the software.

Declaring customs declaration on customs software. Requires the importer to have knowledge about entering data into the software. You should not arbitrarily declare customs declaration when you do not fully understand this work. Arbitrary declaration can easily lead to points 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 of arrival of goods 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 chemical import procedure. Enterprises that make false declarations will face penalties on taxes and origin according to customs law.

Step 2: Chemical declaration

Chemical declaration is a mandatory task for chemicals listed in Appendix V of Decree No. 113/2017/ND-CP. For details on the chemical declaration process, please see the section above.

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 flow, print out the declaration and bring the import documents to the customs office to open the declaration. Depending on the green, yellow, or red flow, follow 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 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 chemical import procedures. You should not leave the declaration for a long time before bringing it down to carry out the import procedures.

Step 4. Clear the customs declaration

After checking the documents, if there are no questions, the customs officer will accept the declaration. You can now pay the import tax for the customs declaration to bring the goods to the warehouse for storage. 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.