Procedures for importing generators

1. Generator import policy

The process of carrying out procedures for importing generators of all kinds is specified in the following legal documents:

• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Decree 69/2018/ND-CP dated 15/05/2018;
• Decree No. 15/2018/ND-CP dated 02/02/2018;
• Decision No. 583/QD-TCHQ dated 22/03/2019;
• Decision 18/2019/QD-TTg dated 19/04/2019;
• 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, generators are not on the list of goods banned from import. The procedure for importing generators will proceed like other normal items. When importing generators, it is necessary to pay attention to the following points:

• Used generators are less than 10 years old;
• When importing generators, they must be labeled according to 43/2017/ND-CP;
• Identify the correct hs code to determine the right tax and avoid penalties;

The above are all legal regulations related to the procedures for importing generators. If you do not fully understand the above processes, please contact the hotline or hotmail for advice.

2. Identify the hs code for the generator

Determining the hs code is the most important step when carrying out the import procedure for generators. Identifying the hs code will determine import duties, VAT, and import policies. In order to determine the correct hs code, you need to understand the characteristics of the goods: The material, composition and characteristics of the product.

2.1 Generator HS Code

The hs code (Harmonized System) is a series of codes that are common to all goods worldwide. Between different countries in the world, only the number of tails differs. So 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 generator code sheet.

2.2 Risks of applying the wrong HS code

Identifying the correct HS code is very important when carrying out the import procedure for generators. Misidentifying the hs code will bring certain risks to you, such as:

• 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;
• Being fined for falsely declaring the hs code according to Decree 128/2020/ND-CP;
• Delay in delivery: If the goods are found to have an incorrect HS code declaration, 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;
• 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 the specific type of generator. Please contact the hotline or hotmail for advice.

3. Import tax on generators

Determining import duties is a way for importers to calculate the cost of importing goods. The import duty of the goods depends on the hs code of the item. Each HS code has a specific tax rate. Here, Just In Time would like to introduce how to calculate import tax and notes when determining tax in the process of importing generators.

3.1 How to calculate generator import tax

Import taxes on generators 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 generator import tax

When determining the import tax of generators, 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, Korea, Japan, ASEAN countries. It is necessary to note that the special preferential tax rate is usually 0%;
• To enjoy preferential tax rates, a certificate of origin is required;
• 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;
• Import taxes will also be subject to VAT;

Import taxes are an integral part and are mandatory for importers to pay in the process of importing generators. If you do not understand how to calculate, please contact the hotline or hotmail for advice.

4. Generator import dossier set

Dossier of procedures for import of generators in particular and import of other goods in general. Specified in Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018. The dossier for carrying out procedures for import of generators of all kinds includes the following documents:

• Customs declaration;
• Sale contract;
• Packing list;
• Commercial invoices;
• Bill of lading;
• Certificate of origin (if any);
• Catalogue (if any), and other documents if required by customs;

Above are all documents used to carry out customs clearance procedures for DC, AC, single-phase, three-phase and other types of generators. The most important are customs declarations, commercial invoices, bills of lading, certificates of origin. Other documents will be supplemented if requested by the customs office.

If you do not understand the above documents, please contact our hotline or hotmail for advice.

5. Procedures for importing generator sets

The process of importing generators as well as other items. It is very specifically stipulated 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. The following are the main steps for importing quartz sand generators of all kinds.

Step 1. Customs
declaration After having all import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival goods and identification of HS codes of generators of all kinds. Then you can enter the declared information into the customs system via software.

The declaration of customs declarations on customs software. It requires the importer to have an understanding of input into the software. You should not file a customs declaration on your own without a clear understanding of the job. The arbitrary declaration may have wrong 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 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 process of importing generators. Falsely declaring businesses will face tax and origin penalties 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 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 carry out procedures for importing generators of all kinds.

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 generators. 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. In order to be able to pick up the goods smoothly, you need to prepare a full drop order, means of transport and goods that are accepted for passing through the surveillance area.

Above are the four basic steps to import generators of all kinds. If you do not understand the process, please contact the hotline or hotmail for advice.

6. Notes when carrying out procedures for importing generators

When carrying out procedures for importing generators, it is necessary to pay attention to the following points:

Import tax is an obligation that must be fulfilled with the state; Accurate
identification of the generator hs code is very important to determine the tax and avoid penalties for imposing the wrong HS code;
It is recommended to prepare documents before importing goods. Avoid storage and storage that incur costs;
When importing generators, it is necessary to label the goods;
Used generators are allowed to be imported provided that the age of the equipment does not exceed 10 years;
Goods are only sold on the market when the declaration has been cleared;

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.

JUST IN TIME JOINT STOCK COMPANY

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