Procedures for importing machinery and equipment in accordance with the new regulation


U&I Logistics - According to statistical results, machinery and equipment accounted for a relatively high proportion in the list of items with import turnover in Vietnam. However, in order to import this item to Vietnam, most companies do not understand the implementation process. Therefore, to help businesses as well as shippers facilitate the import procedures of machinery and equipment, let's find out with U&I Logistics right in the article below!

Procedures for importing machinery and equipment in accordance with the new regulation

1. Regulations, HS codes and tax rates for imported machinery and equipment

1.1. About item types

Machinery imported into Vietnam is usually divided into 2 types:

100% new machinery

Machines that are considered 100% new are those that are manufactured and then shipped, have a manufacturing year that is not too long, and have not been operated. At the same time, the machine is untapped, unused and has a full label.

However, it is necessary to rely on the results of the inspection agency to determine that the machine is 100% new.

100% new machinery items are not on the list of the prohibited goods. However, for some types of machines, certain documents will be required.

Used machinery

According to Article 6 of Decision 18/2019/QD-TTg, the law stipulates that if you want to import old machinery, you must meet the following criteria:

“1. Its age does not exceed 10 years. Ages of machinery and equipment in certain specific fields are provided for in the Appendix I enclosed herewith.

2. It is manufactured in accordance with:

a) National Technical Regulations (QCVN) on safety, energy saving, and environmental protection;

b) In case of unavailability of National Technical Regulations (QCVN) for the type of machinery or equipment to be imported, it must be manufactured in conformity with technical indicators of Vietnam’s Standards (TCVN) or Standards of G7 countries or Korea with regard to safety, energy saving, and environmental protection”.

1.2. About HS code

If the imported machinery has an identification code, the identifier code shall be applied. Otherwise, if there is no identifier, use the specified HS code application rule. Based on the nature, characteristics and reality of the goods, it is possible to apply the HS code for the most appropriate machinery.

1.3. About taxes

To complete the procedure for importing used machinery, enterprises need to fulfill their obligations with the following taxes:

  • VAT fluctuates at 10%.
  • Preferential import tax will have separate rates for each specific type of machinery.

2. Procedures for completing import procedures for machinery and equipment

4 steps complete import procedures for machinery and equipment

Step 1: Check and prepare import documents

For machinery and equipment, it is necessary to prepare the following documents:

  • Commercial invoice
  • Bill of lading
  • License or written permission from the competent authority
  • Customs declaration
  • Certificate of Origin (if any)
  • 01 copy of the list of machinery and equipment
  • ….

In addition to documents prescribed by the Customs Law, enterprises must supplement the following documents:

  • Certificate of Inspection
  • In the case of importing used machinery, if it is older than the prescribed age but still has an efficiency of over 85%, the enterprise needs to submit an additional document approving the import of old machinery from the Ministry of Science and Technology.

Step 2: Declare and transmit the customs declaration

After preparing and completing the documents, the enterprise will carry out customs declaration. Enterprises need to fill in all information of imported goods when declaring, to avoid errors because it will affect the customs clearance process.

If there is no experience, the importer is required to use external customs brokerage service to make the declaration process safe and avoid unnecessary risks.

When the declaration is complete and transmitted, the number will be automatically assigned by the system if the information is correct and complete. Double check the information to make sure there are no errors.

Step 3: Pay tax and complete import procedures

It is necessary to pay 2 main taxes for imported goods, which are:

  • Import Tax
  • Value Added Tax (VAT)

Step 4: Transfer the goods to the storage warehouse

After completing the customs procedures, the importer needs to pay the fee and receive the EIR (delivery note) to be loaded onto the truck and transported to the warehouse for storage. Need to be prepared to rent a vehicle to pick up the goods to the warehouse if there is a separate warehouse or rent a warehouse/yard to be able to store the shipment.

The steps may vary when importing actual machinery & equipment products depending on many different factors (specific goods, means of transport,...). In order to have a detailed understanding of all the necessary processes and documents, individuals or businesses should seek out an outsourced import-export service provider to ensure the safety of the export clearance process.

3. A few notes about importing used machinery and equipment

For used machinery and equipment without manufacturer's certification, enterprises should pay attention to the following issues:

  • After the enterprise submits the Certificate of Inspection certified by the designated inspection organization to Customs, the enterprise has the right to bring the shipment to the warehouse for preservation.
  • Enterprises must submit Certificate of Inspection to the customs office within a maximum of 30 days from the time the shipment is put into storage.
  • If the inspection results do not meet the prescribed requirements, the importing enterprise will be considered an administrative violation and handled according to the regulations of the Customs.

4. U&I Logistics - Customs brokerage agency service

With more than years of experience in import and export activities, U&I Logistics Corporation is proud to be a pioneer in the field of customs procedures in Vietnam.

Customs clearance services at U&I Logistics include:

  • Customs clearance procedure
  • C/O procedure
  • Freight forwarding
  • Import-export tax fee consultancy

>>> You may be interested: Customs brokerage service at U&I Logistics

With the trust of customers, U&I Logistics is committed to making more efforts to bring success to all partners in import and export activities.

U&I Logistics

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