Steel import procedures

Posted on: 16/12/2024

Steel is a raw material used a lot in life, especially in construction. Steel is imported from many different countries in the world such as: China, Japan, Korea, Malaysia. Steel is imported in many forms such as: coils, bars, pipes, plates. To be able to import this item into Vietnam, the importer must have knowledge of foreign trade and understanding of customs laws. Below, Just In Time would like to share about the procedures for importing all kinds of steel, determining HS codes, calculating import taxes and notes when importing this item into Vietnam.

1. Steel import policy

1.1. Legal basis

Steel is a type of commodity imported into Vietnam in large quantities, mainly for construction purposes. The procedures for importing steel of all types are stipulated in the following legal documents:

Circular 58/2015/TTLT-BCT-BKHCN dated December 31, 2015
Circular 18/2017/TT-BCT dated September 21, 2017
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
Decree 15/2018/ND-CP dated February 2, 2018
Decision 583/QD-TCHQ dated March 22, 2019
Decision 3390/QD-BCT dated December 21, 2020
Decision 920/QD-BCT dated March 20, 2020
Official Letter 638/TCHQ-TXNK dated February 22, 2022

According to the above legal documents, it can be seen that new steel products are not on the list of prohibited import goods. For used products, they must be imported as scrap. To import, an import license is required. There are many different types of steel, and when carrying out import procedures, there will be different regulations for each type. The most important point of steel import is to check the quality of imported goods. In addition, the import tax of steel is also very different, some types of steel are subject to anti-dumping tax.

1.2. Steel import policy of all kinds

When carrying out procedures to import steel into Vietnam, the following points must be noted:

Must accurately determine the HS code of the imported steel;
Some types of steel must be inspected for quality when imported;
Some types of steel will be subject to anti-dumping tax, self-defense tax;
There must be a steel mark on the product clearly stating the contents of the product label.

The list of steel products subject to quality inspection is specified in Appendix II, III of Circular 58/2015/TTLT-BCT-BKHCN. Steel products subject to quality inspection include the following types:

HS Code	Description
Appendix II
7206	Iron or non-alloy steel in ingots or other primary forms (excluding ferrous products of heading 72.03)
7207	Iron or non-alloy steel in semi-finished form
7208	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated
7209	Flat-rolled products of iron or non-alloy steel, of a width of 600mm or more, cold-rolled (cold-reduced), not clad, plated or coated
7210	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated
7212	Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated
7213	Bars and rods of iron or non-alloy steel, hot-rolled, in irregularly wound coils
7214	Other bars and rods of iron or non-alloy steel, not further processed than forged, hot-rolled, hot-drawn or hot-extruded, including those twisted after rolling
7215	Other bars and rods of iron or non-alloy steel
7216	Iron or non-alloy steel angles, shapes, profiles
7217	Wire of iron or non-alloy steel
7219	Flat rolled products of stainless steel, of width 600 mm or more
7220	Flat rolled stainless steel products, width less than 600 mm
7224	Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel
7225	Flat-rolled other alloy steel, of width 600 mm or more
7226	Flat-rolled products of other alloy steel, of a width of less than 600 mm
7227	Bars and rods, of other alloy steel, hot-rolled, in irregularly coiled forms
7228	Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow bars and rods, of alloy or non-alloy steel
7229	Other alloy steel wire
7306	Other tubes, pipes and hollow profiles, of iron or steel
Appendix III
7207	Iron or non-alloy steel in semi-finished form
7210	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated
7224	Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel
7225	Flat-rolled products of other alloy steel, of a width of less than 600 mm
7306	Other tubes, pipes and hollow profiles (for example, open seam, welded, riveted or similarly closed), of iron or steel

Above are all types of steel that must be inspected for import quality according to Circular 58/2015/TTLT-BCT-BKHCN and Decision No. 2711/QD-BKHCN. We only provide the HS code of the first 4 digits, for more information and details about steel import procedures and HS code details that must be inspected for quality. Please contact our hotline or hotmail for advice.

2. Determine HS code for imported steel

Looking up HS code is the most important task before carrying out steel import procedures. To be able to accurately determine the HS code, it is necessary to understand the properties, components, functions, and raw materials used to manufacture the product.

2.1. HS code for steel of all types

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. The HS code of iron and steel is divided into two chapters in the import and export tax schedule as follows:

Chapter 72: Iron and steel;
Chapter 73: Iron or steel products.

To accurately determine the HS code, it is necessary to understand the characteristics of the product and the product description in the import and export tax schedule. For iron and steel products, it is necessary to note that when looking up the HS code, it is necessary to determine the size, type of stainless steel or regular steel, cold rolled or hot rolled, alloy or non-alloy. There are many factors that can cause you to incorrectly determine the HS code of steel and steel products.

2.2. Risks of applying the wrong HS code

Determining the correct HS code is very important when carrying out procedures for importing steel and steel products. 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 the correct information about the type of goods.
Delayed delivery: If the goods are found to have an incorrect HS code, 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 cycle of the enterprise.
Subject to fines for declaring incorrect HS codes according to Decree 128/2020/ND-CP;
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.

To accurately determine the HS code for each specific type of iron and steel. Please contact the hotline or hotmail for advice.

3. Import tax on steel of all kinds

Determining tax is an extremely important step in the process of importing steel of all kinds. Import tax is an obligation that importers must fulfill when importing goods to Vietnam. Import tax on steel products has two main types: import tax and import VAT. In addition, some HS codes also have anti-dumping tax and self-defense tax.

How to calculate tax when carrying out procedures for importing steel of all kinds as follows:

Self-defense tax on steel products
Self-defense tax = CIF value x % self-defense tax rate

Anti-dumping tax
Anti-dumping tax = CIF value x % anti-dumping tax rate

Import tax
Import tax = CIF value x % import tax rate

Import VAT is determined by the formula:
Value added tax = (CIF value + Import tax + Self-defense tax + Anti-dumping tax) x % VAT rate.

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

Anti-dumping tax and safeguard tax depend on each specific type of steel. They are regulated according to different steel HS codes. Safeguard tax is adjusted according to Circular 918/QD-BCT, anti-dumping tax is adjusted according to Circular 3162/QD-BCT.

4. Steel import procedures

The set of steel import procedures includes the following documents:

Customs declaration
Sales contract
Packing list
Commercial invoice
Bill of lading
Certificate of origin (if any)
Imported goods quality inspection
Catalog (if any), and other documents if required by customs.

Above are all the documents used to carry out import procedures for shaped steel, wire steel, and other types of steel. The most important are the customs declaration, commercial invoice, bill of lading, and certificate of origin. Other documents will be added if requested by the Customs.

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

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5. Imported steel quality inspection process

Most imported raw steel products must be inspected for quality. Imported steel quality inspection is under the management of the Ministry of Science and Technology, and most quality inspections are an indispensable step in the steel import procedures. The following is the process for inspecting the quality of imported steel into Vietnam.

Step 1. Register information on the one-stop system

To register for imported goods quality inspection records. First, you must have an account on the national one-stop website vnsw.gov.vn. Once you have an account, you can enter data and register for quality inspection.

The registration file will be managed by the Department of Standards, Metrology and Quality. Each locality will have a separate metrology department to facilitate steel import procedures.

Step 2. Sampling and quality inspection

After the file is accepted on the national one-stop information portal. Then you can contact the quality inspection unit to collect samples and test samples. The choice of sample testing unit depends on the enterprise. However, the unit must still be on the list approved by the Ministry of Science and Technology.

Step 3. Receive results and upload results to the one-stop page

After having the quality inspection results, you can upload the results to the one-stop information portal to complete the procedures for importing steel of all kinds.

These results can be uploaded by the inspection center or uploaded by the enterprise using its own account.

Above are the three basic steps to do quality inspection in the steel import procedure. Quality inspection depends on the HS code of the imported steel type. If you do not understand the process of quality inspection and steel import procedures. Please contact our hotline or hotmail for advice.

6. Procedures for importing steel

The procedure for importing steel and steel products as well as many other items. It is very specifically regulated in Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented by 39/2018/TT-BTC dated April 20, 2018. We summarize the short description steps so that you can visualize the whole picture. The procedure for importing shaped steel, I-shaped steel H T V L Y, steel pipes, alloy steel, steel bars of all kinds 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 steel HS code. Then you can enter the declaration information into the customs system via software. After having a customs declaration, you can register a quality inspection file on the national single window system. Depending on the type of steel, there are types that do not need to be inspected for quality.

Declare customs declaration on customs software. Requires importers to have knowledge of entering data into the software. Do not declare customs declarations on your own when you do not fully understand this work. Declaring 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 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 steel of all kinds. All declaration contents will be pushed to the customs system. If there are errors, it will affect 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, carry out the steps to import I H L V Y steel, steel pipes, round steel, stainless steel.

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 steel import procedures. 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 for the declaration to be cleared. 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

After the customs declaration is cleared, proceed to the declaration liquidation step and do the necessary procedures to bring the goods back to the warehouse. To be able to bring the goods back to the warehouse, you need to prepare the delivery order, the port pick-up form and arrange the means to pick up the goods. Avoid the situation where the declaration is completed but there is an order from the shipping line to take the goods out of the port.

Above are the steps for importing steel and steel products. If you do not understand the steps, please contact us via hotline or hotmail for advice.

7. Notes when importing steel

In the process of importing steel for customers, Just In Time has drawn out experiences that we would like to share with you. When importing steel, you need to note the following points:

Import tax is an obligation to be fulfilled with the state.
Raw steel has many different HS codes, in addition to self-defense tax and anti-dumping tax. It is necessary to check carefully before importing to avoid unexpected taxes.
Value added tax for steel products is 10%.
When importing steel, it is necessary to label the goods according to 43/2017/ND-CP;
Determine the correct HS code to determine the correct tax and avoid being fined.
Prepare documents before importing goods. Avoid storage and warehousing which can cause costs.

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.