Procedures for importing drill bits

1. Policy on import of drill bits of all kinds

The process of carrying out procedures for importing drill bits 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. 43/2017/ND-CP dated 14/4/2017;
• Decree 128/2020/ND-CP dated 19/10/2020;

According to the above legal documents, drill bits are not on the list of goods banned from import. The procedure for importing wood drill bits, iron drill bits, glass drill bits, concrete drill bits, will proceed like other normal items.

The most important thing when carrying out procedures for importing drill bits is to determine the hs code. Therefore, by determining the hs code correctly, it is possible to determine VAT, import tax, import policies and procedures for importing drill bits of all kinds.

The next section is a compilation of hs codes of drill bits. Stay tuned for the next installment.

2. HS codes for drill bits of all kinds

To determine the HS code, it must be based on the material, structure, size, and performance. For drill bits, it is only necessary to determine the principle of operation and use to determine the hs code of the drill bit. The drill bit is the part of the drill machine. However, the hs code of the drill bit has its own code, so it cannot be included in the hs code of the part of the drill. Here, Just In Time has summarized the hs codes of drill bits according to the table below:

According to the above HS code table, accordingly, the import tax of the drill bit is 0%, the VAT of the drill bit is 10%. In addition to the above preferential tax rates, there are many other special preferential tax rates. For shipments with certificates of origin, they are allowed to apply special preferential tax rates

If you have not identified the hs code of the drill bits you imported. Please contact our hotline or hotmail for advice.

3. Import tax on drill bits

Import tax is an obligation that the importer must fulfill when importing goods to Vietnam. There are two types of import taxes for drill bits: Value Added Tax and Import Tax. To be able to calculate import taxes, please refer to the calculations below. The tax calculation method when carrying out procedures for importing drill bits of all kinds is as follows:

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 rate

According to the above formula, it can be seen that the import tax on drill bits of all kinds depends on the tax rate according to the HS code. In order to obtain the lowest and most accurate tax rate, it is necessary to correctly determine the HS code of all types of drills. Besides, it also depends on whether the shipment has a certificate of origin or not, to enjoy a special preferential tax rate.

For goods imported from countries such as Europe, India, Australia, Chile, China, South Korea, Japan, Asean countries. The importer should ask the seller to provide him with a certificate of origin to enjoy the lowest import tax rate for drill bits of all kinds.

4. Dossier of import of drill bits of all kinds

The set of dossiers for carrying out procedures for importing drill bits of all kinds includes the following documents:

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

Above are all documents used for customs clearance procedures for drill bits of all kinds. 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. Process of importing drill bits of all kinds

The process of carrying out procedures for importing drill bits 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 complete import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival of goods and identification of drill bit HS codes of all kinds. 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 procedure for importing drill bits. 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 carry out procedures for importing drill bits of all kinds are carried out.

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 drill bits. 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 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. Bringing goods for preservation and use
of customs clearance declarations, liquidation of declarations and carrying out necessary procedures to bring goods to warehouses. 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 the procedure for importing drill bits. If you do not understand or have questions, please contact the hotline or hotmail for advice.

6. Notes when carrying out procedures for importing drill bits

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

• Import tax is an obligation that the importer must fulfill to the state;
• The import tax of the drill bit 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.

JUST IN TIME JOINT STOCK COMPANY

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