1. Electronic components import policy
Procedures and policies for importing electronic components are stipulated in the following legal documents:
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Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by 39/2018/TT-BTC dated April 20, 2018;
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Decree 69/2018/ND-CP dated May 15, 2018;
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Decree No. 15/2018/ND-CP dated February 2, 2018;
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Decree 69/2018/ND-CP dated May 15, 2018;
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Decree No. 43/2017/ND-CP dated April 14, 2017;
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Decree 128/2020/ND-CP dated October 19, 2020;
According to the above legal documents, electronic components are not on the list of prohibited import goods. Used electronic components are on the list of prohibited import goods. When carrying out procedures for importing electronic components, the following points should be noted:
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Used electronic components are not allowed to be imported;
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When importing electronic components, goods must be labeled according to 43/2017/ND-CP;
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Identify the correct HS code to determine the correct tax and avoid penalties;
Above are all the legal regulations related to the procedures for importing electronic components. If you do not fully understand the above procedures, please contact the hotline or hotmail for advice.
2. Determine the HS code of electronic components
Determining the HS code is the most important step when doing procedures to import electronic components. Determining the HS code will determine import tax, VAT and import policy. To determine the correct HS code of desiccant, you need to understand the characteristics of the goods: Material, what equipment the component is installed in.
2.1 HS code for electronic components
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, Just In Time would like to share with you the HS code table for electronic components.
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HS Code
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Describe
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85163100
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HS code hair dryer
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85321000
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HS Code of Fixed Capacitor
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85331000
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HS Code Fixed Resistor
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85411000
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HS code transistor
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85423100
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HS Code of Integrated Circuit
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85340000
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HS Code Printed Circuit Board (PCB)
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85369000
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HS Code for Voltage Connectors below 1000V
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2.2 Risks of applying the wrong HS code
Determining the correct HS code is very important when doing procedures to import electronic components. Determining the wrong HS code will bring certain risks to you such as:
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Customs Delays: Incorrect declaration of HS codes can lead to delays in customs clearance, as time is needed to check and verify the correct information about the type of goods.
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In case of import tax, you will face a minimum fine of VND 2,000,000 and a maximum fine of 3 times the tax amount.
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Penalty for declaring incorrect HS code according to Decree 128/2020/ND-CP;
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Delayed delivery: If goods are found to have incorrect HS codes, customs authorities may request corrections or clarifications. This may result in delays in delivery and affect the production and business cycle of the enterprise;
To determine the exact HS code for a specific type of electronic component. Please contact the hotline or hotmail for advice.
3. Import tax on electronic components
Determining import tax is one of the important steps in the process of importing electronic components. Because import tax is an obligation that the importer must fulfill with the state. There are two types of import tax: import tax and import VAT. You can refer to the method of calculating import tax as below:
Import tax determined by HS code, import tax is calculated according to the formula:
Import tax = CIF value x % tax rate
CIF value is determined by the ex-factory value of the goods plus all costs to bring the goods to the first port of entry in the importing country.
Import VAT is determined by the formula:
Value added tax = (CIF value + Import tax) x % VAT rate
According to the above calculations, it can be seen that the import tax of electronic components depends on the import tax rate. The import tax rate is determined by the selected electronic component HS code.
According to the import-export tax schedule, electronic components have a preferential tax rate of 0%. Therefore, when importing electronic components, there is only a VAT of 10%.
The special preferential tax rate is usually 0%, applied to goods imported from countries and territories with which Vietnam has signed trade agreements such as: China, Korea, Japan, Chile, Europe, Australia, India and ASEAN countries. To be eligible for the special preferential import tax rate, the shipment must have a certificate of origin, also known as C/O.
4. Import labeling for electronic components
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 electronic components from different countries.
4.1 Label content
In addition to labeling, the content of the label is also very important. The content of the labels of the items is regulated in Decree No. 43/2017/ND-CP. For electronic components, the content of a complete label includes the following information:
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Exporter's information (address, company name);
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Importer information (address, company name);
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Product name and product information;
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Origin of goods;
These are the basic label contents that must be affixed to the goods. The information displayed must be in English or other languages that must be translated. When carrying out import procedures for electronic components, if a red line is encountered, the customs inspection will pay close attention to the label contents above.
4.2 Label position on goods
Labeling the goods is necessary, however, labeling in the right place is more important. When importing, the goods label needs to 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 place will help save time in checking the goods when doing the procedures for importing electronic components of all kinds.
For retail goods on the market, it is necessary to display more information. Such as manufacturer, quantity of goods, technical specifications, production date, safety warnings.
4.3 Risks of not labeling
Labeling of goods is required by law. If the goods are not labeled when imported or the label content is incorrect, the importer faces the following risks:
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Be fined according to regulations, the fine level is specified in Article 22 of Decree 128/2020/ND-CP;
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No special preferential import tax will be enjoyed because the certificate of origin will be rejected;
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Goods are easily lost or damaged due to lack of warning labels for loading, unloading and transportation;
With the above risks, we recommend that you label your goods when doing the procedures for importing electronic components. If you do not fully understand the regulations on product labels, please contact the hotline or hotmail for advice.
5. Documents for import procedures of electronic components
Documents for import procedures for electronic components in particular, and import procedures for other goods in general. Stipulated in Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018.
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Customs declaration;
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Bill of lading;
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Commercial invoice;
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Packing list;
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Sales contract;
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Certificate of origin (C/O) if any;
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Catalogs;
Above are all the documents in the file for import procedures of electronic components. The following documents are the most important: Customs declaration, bill of lading, commercial invoice. Other documents will be provided upon request from customs.
Certificate of origin is not a mandatory document. However, this is a very important document for importers to enjoy preferential import tax rates. Therefore, importers should negotiate and request the seller to provide a certificate of origin.
If you do not understand the documents for importing electronic components. Please contact hotline or hotmail for advice.
6. Procedures for importing electronic components
The procedure for importing electronic components 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 Circular 39/2018/TT-BTC dated April 20, 2018. We summarize the steps briefly so that you can visualize the whole picture. Below are the main steps for importing electronic components of all kinds.
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 HS code of electronic components. Then you can enter the declaration information into the customs system via the customs declaration software.
Declare customs declaration on customs software. Requires importers to have knowledge of data entry into the software. Do not declare customs declaration on your own when you do not fully understand this work. Declare customs declaration 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 of arrival of the goods at the port, the customs declarant must make a 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 electronic components. If the declaration is incorrect, the business will face penalties for tax and origin according to customs law.
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, or red classification, perform 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 Department 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 electronic components. You should not leave the declaration for a long time before bringing it down to carry out the import procedures.
Step 3. Clearing goods
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 to clear the declaration. If it is overdue, you will face a penalty fee and it will take a lot of time.
Step 4. Bring the goods back to preserve and use
the Customs declaration, then proceed to liquidate the declaration and complete the necessary procedures to bring the goods back to the warehouse. To be able to receive 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 for importing electronic components. If you do not understand the steps, please contact us for advice.
7. Notes when importing electronic components
When importing electronic components, you need to note the following points:
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Import tax is an obligation that the importer must fulfill to the state;
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Need to find a reputable supplier and choose a suitable and safe payment method;
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Correctly determining the HS code of electronic components is very important to determine tax and avoid penalties for applying the wrong HS code;
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When importing electronic components, it is necessary to label the goods;
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Goods can only be consumed on the market when the declaration is cleared through customs;
If you have difficulty with customs procedures, you can choose Just In Time as your companion.
Just In Time staff is always enthusiastic to support you to handle work quickly and professionally.
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