Procedures for importing water pumps

1. Policy on importing new and used pumps

Procedures for importing new or used (old) water pumps are stipulated in the following legal documents:

• Circular 23/2015/TT-BKHCN dated November 13, 2015;
• Circular 103/2015/TT-BTC dated July 1, 2015;
• Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by 39/2018/TT-BTC dated April 20, 2018;
• Decree 69/2018/ND-CP dated May 15, 2018;
• Decision 18/2019/QD-TTg dated April 19, 2019;

According to the above documents, new and used water pumps are not on the list of prohibited imports. However, for old water pumps and pumps for agriculture, the following procedures must be followed:

• Old water pumps must be inspected according to Decision 18/2019/QD-TTg when importing;
• Imported water pumps must have product labels;
• Determine the exact HS code to be able to apply the correct tax rate to avoid tax errors;

When importing a pump, the most important thing is to determine the HS code. Determining the HS code will determine the import policy, import tax and VAT of the water pump.

2. HS code of water pump

Determining the HS code is the most important step when importing water pumps. Determining the HS code will determine the import tax, VAT and import policy. To determine the correct HS code, you need to understand the characteristics of the goods: Material, composition and characteristics of the product.

2.1 HS code for water pumps

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, Just In Timet would like to share with you the HS code table for water pumps.

HS Code	Description
84132010	HS code for hand water pump
	Reciprocating piston type operation
84135031	HS code for water pump with flow rate not exceeding 8000m3/h, electric operation
84135032	HS code for water pump with flow rate not exceeding 8000m3/h, not electrically operated
84135040	HS code for water pumps, with flow rate over 8,000 m3/h but not exceeding 13,000 m3/h
84135090	HS code for other types of water pumps
	Rotary piston operation
84136031	HS code for water pump with flow rate not exceeding 8000m3/h, electric operation
84136032	HS code for water pump with flow rate not exceeding 8000m3/h, not electrically operated, rotary piston operation
84136040	HS code for water pumps, with a flow rate of over 8,000 m3/h but not exceeding 13,000 m3/h, operating with a rotary piston type
84136090	HS code for water pump, rotary piston operation
	Other centrifugal water pumps
84137011	HS code for single-frequency, single-suction water pump, horizontal shaft driven by belt or direct coupling. Suction diameter not exceeding 200mm
84137019	HS code for single-frequency, single-suction water pump, horizontal shaft driven by belt or direct coupling. Suction diameter over 200mm
84137031	HS code for submersible water pump. Suction diameter not exceeding 200mm
84137039	HS code for submersible water pump. Suction diameter over 200mm
84137042	HS code for other water pumps, with a flow rate not exceeding 8,000 m3/h. Suction diameter not exceeding 200mm, electrically operated
84137043	HS code for other water pumps, with a flow rate not exceeding 8,000 m3/h. Suction diameter not exceeding 200mm, not electrically operated
84137091	Other centrifugal water pumps. Suction diameter not exceeding 200mm
84137099	Other centrifugal water pumps
	Other pumps
84138113	HS code for water pump, with flow rate not exceeding 8,000 m3/h, electrically operated
84138114	HS code for water pumps, with a flow rate not exceeding 8,000 m3/h, not electrically operated
84138115	HS code for water pump, with flow rate over 8,000 m3/h but not exceeding 13,000 m3/h

2.2 Risks of applying the wrong HS code

Determining the correct HS code is very important when carrying out procedures for importing water pumps. 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;
• Being fined 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 the water pump, please contact the hotline or hotmail for advice.

** See more Procedures for importing wall paint, paint of all kinds

3. Import tax on water pumps

Import tax is an obligation that the importer must fulfill when carrying out procedures to import pumps. Import tax on new and old water pumps depends on the HS code selected above. Each HS code has a specific tax rate. You can refer to the import tax calculation below:

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 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 formula, it can be seen that import tax and VAT on water pumps depend on the tax rate, the VAT rate of the pump is 8%. The tax rate depends on the HS code of the water pump. The import tax rate above is the preferential import tax. To enjoy the special preferential import tax rate, the shipment must have a certificate of origin (Certificate of origin - C/O).

If you do not understand how to calculate import tax and VAT for water pumps. Please contact our hotline or hotmail for advice.

4. 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 water pumps from different countries.

4.1 Label content

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

4.2 Labeling position on goods

Labeling on goods is necessary, however, labeling in the right position is more important. When importing, the product 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 position will help save time in checking goods when doing import procedures for all kinds of water pumps.

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

4.3 Risks 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:

• Being fined according to regulations, the penalty level is stipulated in Article 22 of Decree 128/2020/ND-CP;
• Not enjoying special preferential import tax because the certificate of origin will be rejected;
• 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 the goods when carrying out procedures for importing water pumps. If you do not fully understand the regulations on product labels, please contact the hotline or hotmail for advice.

5. Documents for importing water pumps

Procedures for importing new and used water pumps include the following documents:

• Customs declaration;
• Sales contract;
• Commercial invoice;
• Packing list;
• Bill of lading;
• Catalog (if any), and other documents if required by customs;
• Registration and inspection documents;

For used water pumps, the following additional documents are required:

• A copy of the Business Registration Certificate with the enterprise's stamp;
• In case there is no QCVN, there must be a certificate of the year of manufacture of the factory in the exporting country. And there must be confirmation from the Vietnamese consulate in that country;

For water pumps serving agriculture, it is necessary to register for quality inspection. The VAT of machines serving agriculture is 5%.

Above are all the documents used for customs clearance of water pumps. The most important are the customs declaration, inspection certificate, commercial invoice, bill of lading. Other documents will be supplemented if requested by the Customs authority.

Of the above documents, the customs declaration is declared after the goods have arrived at the port. Other documents are available from the beginning, so the importer should prepare in advance, avoiding the situation where the goods have arrived at the port and then prepare. This will prolong the time for the import procedures for new or used water pumps.

6. Water pump import process

The procedure for importing water pumps and used water pumps is only different from that for new goods, which is to check and assess the age of the equipment.

The inspection dossier will be carried out after having the customs declaration and the above import dossier. The declarant must register for inspection on the national single window website, after having the inspection acceptance number, he can proceed with customs procedures. The procedure for importing new or used water pumps includes the following steps:

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 the water pump. Then you can enter the declaration information into the customs system via software.

Declaring customs declaration on customs software. Requires the importer to have knowledge of entering data into the software. Do not arbitrarily declare customs declaration when you do not fully understand this work. Arbitrary declaration may 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 water pumps. All declaration contents will be pushed to the customs system. If there are errors affecting the tax or origin of the goods. The importer may face penalties according to customs law. Therefore, it is necessary to pay attention to the information entered on the declaration such as HS code, tax rate, product name, origin.

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 branch to open the declaration. Depending on the green, yellow, red flow, perform the steps to open the declaration. For water pumps used in agriculture, it is necessary to register for quality inspection.

Opening the declaration must be done 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 office to carry out the procedures for importing water pumps. 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 the import tax for 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 clear customs. If it is overdue, you will face a penalty fee and it will take a lot of time.

Step 4. Bring the goods back for storage and use
Customs declaration, proceed with the declaration liquidation step and complete the necessary procedures to bring the goods 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.

The above are four steps to carry out the procedures for importing water pumps. If you do not understand or have questions, please contact the hotline or hotmail for advice.

** See more List of goods prohibited from import into Vietnam

7. Notes when importing water pumps

When carrying out procedures for importing water pumps, you need to note the following points:

• Used water pumps that are not more than 10 years old can be imported;
• Imported water pumps for agricultural purposes are subject to VAT of 5%;
• Water pumps for agricultural purposes must be registered for quality inspection;
• Used water pumps that are not included in QCVN must have a certificate from the seller and confirmation from the Vietnamese consulate in the exporting country;

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.

 

JUST IN TIME JOINT STOCK COMPANY

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