Procedures for importing sewing machine spare parts

1. Policies on import of sewing machine components

The process of carrying out procedures for importing sewing machine components is specified in the following legal documents.

• Circular 38/2015/TT-BTC dated 25/3/2015; amending and supplementing 39/2018/TT-BTC dated 20/04/2018;
• Decree 69/2018/ND-CP dated 15/05/2018;
• Decree No. 43/2017/ND-CP dated 14/4/2017;
• Decree 128/2020/ND-CP dated 19/10/2020;

According to the above legal documents, sewing machine components are not on the list of goods banned from import. However, when carrying out procedures for importing sewing machine components, it is necessary to pay attention to the following points:

• Used sewing machine components on the list of goods banned from import;
• When importing, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;

Above are the policies regulating the import of sewing machine components. If you don't fully understand the above policies. Please contact the hotline or hotmail for advice.

2. Determination of hs codes for import of sewing machine components

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

2.1 HS codes for sewing machines of all kinds

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 would like to share with you the hs code table of sewing machine components.

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out procedures for importing components and spare parts for sewing machines. 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 accurately determine the hs code for the type of component or part of the sewing machine. Please contact the hotline or hotmail for advice.

3. Import tax on components and spare parts of sewing machines

Import tax is an obligation that importers must fulfill when carrying out procedures for importing components and spare parts of sewing machines. Tax obligations are mandatory and goods are only cleared when the tax obligation has been fulfilled. There are two types of import taxes, namely VAT and import tax. The import tax depends on the hs code of the selected goods. The import tax calculation method is as follows:

3.1 How to calculate import tax on components and spare parts of sewing machines

Import tax on sewing machine components and spare parts is calculated according to the formula like other items. There are two types of import tax on this item, namely import tax and import VAT.

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.

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 the cost included in the cost of goods sold of an order. Therefore, you must check the correct HS code to get the best import tax code.

3.2 Notes when determining import tax on sewing machine components

When determining import tax in the process of carrying out procedures for importing components and spare parts of sewing machines, it is necessary to pay attention to the following points:

• For countries that have signed trade agreements with Vietnam such as: Europe, India, Australia, Chile, China, South Korea, Japan, Asean countries. It is necessary to note that the special preferential tax rate is usually 0%;
• To enjoy the preferential tax rate, 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 into CIF value for import tax calculation;
• Import taxes will also be subject to VAT;

Those are the notes when calculating import taxes for components and spare parts of sewing machines. If you don't understand how to calculate taxes and the notes above. Please contact the hotline or hotmail for advice.

4. Dossiers of import of spare parts and components of sewing machines

A set of dossiers for carrying out procedures for importing forklift components and spare parts in particular, carrying out procedures for importing other items in general. Stipulated in Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018.

• Customs declaration;
• Bill of lading;
• Packing list;
• Commercial invoice;
• Sale contract;
• Certificate of origin, if any;

Above are all documents used to carry out procedures for importing sewing machine components. The most important are customs declarations, commercial invoices, bills of lading, and medical device declaration documents. Other documents will be supplemented if requested by the customs office.

Preparing documents before importing sewing machine components is extremely important. For original documents such as bills of lading, certificates of origin, the importer must ask the seller to deliver the courier in advance. Avoid waiting for documents, which can lead to container storage and cargo storage. If you do not fully understand the documents listed above, you can contact our hotline or hotmail for advice.

5. Procedures for importing sewing machine components

The process of carrying out procedures for importing sewing machine components as well as many other items. It is very specifically stipulated in Circular 38/2015/TT-BTC dated 25/3/2015 amending and supplementing 39/2018/TT-BTC dated 20/04/2018. We summarize the steps in a short description so that you can visualize the big picture.

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 and identification of HS code. 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 of arrival of goods 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 side.

This is the most important step in the process of importing sewing machine components and spare parts. Enterprises that make false declarations will face fines on taxes and origins according to the customs law.

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 flow of declarations, 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, the steps to open the declaration are taken.

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 sewing machine components and spare parts. It is not recommended to leave the declaration for a long time before bringing it down for import procedures.

Step 3. Customs clearance of customs declaration 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.

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. If the goods are brought to the warehouse for preservation and use
of the customs clearance declaration, the liquidation of the declaration and the necessary procedures shall be carried out to bring the goods to the warehouse. 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 steps to carry out procedures for importing sewing machine components and spare parts. If you do not understand or have questions, please contact the hotline or hotmail for advice.

6. Notes when importing sewing machine components and spare parts

When importing sewing machine spare parts, you need to note the following points:

• Import tax is an obligation that the importer must fulfill to the state;
• The import tax of sewing machine parts is quite high, when negotiating with the seller, it is recommended to provide a certificate of origin for tax incentives;
• When importing, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;
• Goods may only be consumed on the market when the declaration is cleared from customs;
• It is recommended to choose a reputable supplier, choose the right payment method to ensure safety;

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.

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