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4 Steps to Complete agricultural machinery import procedures

I. Agricultural Machinery Import Procedures

Importing agricultural machinery is a crucial part of modern agricultural development. It is essential to determine the origin of imported agricultural machinery to ensure that import procedures are carried out correctly and comply with all relevant import regulations and standards. This article will help you understand the necessary regulations and procedures for importing agricultural machinery, including the steps to follow, required documents, and limitations and benefits of this process. With valuable information from this article, you will have the opportunity to grasp the knowledge and apply it effectively to develop business and production in the field of agriculture.


II. Policies and Regulations


1. Agricultural Machinery Import Policies

Import procedures for agricultural machinery, whether new or used, are specifically regulated in various legal documents, including:

  • Circular 23/2015/TT-BKHCN dated November 13, 2015,

  • Circular 103/2015/TT-BTC dated July 1, 2015,

  • Official letter No. 589/CT-TTHT dated January 17, 2017,

  • Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018,

  • Decree 69/2018/NĐ-CP dated May 15, 2018,

  • Decision 18/2019/QĐ-TTg dated April 19, 2019, and

  • Circular 16/2021/TT-BNNPTNT dated December 20, 2021.


agricultural machinery
(agricultural machinery)

According to these documents, agricultural machinery is not on the list of prohibited goods for import. However, when importing agricultural machinery, compliance with the following regulations is necessary:

  • Used agricultural machinery can only be imported if it meets two conditions: imported for production purposes and the equipment's age is not over 10 years.

  • When importing agricultural machinery, ensure labeling according to Decree 43/2017/NĐ-CP.

  • Determine the correct HS code to identify taxes and avoid penalties.


2. Imported Goods Labeling

Labeling on imported goods during import procedures is a crucial regulation in the logistics field in Vietnam. Despite previous regulations, the issuance of Decree 128/2020/NĐ-CP has made the inspection and compliance with goods labeling more stringent. Labeling goods during the import process plays a significant role in managing and identifying the origin of goods. It helps authorities track goods, determine origin, and identify responsible units for goods. Therefore, complying with labeling regulations is mandatory when importing agricultural machinery.

The content of the label is also essential and is specifically regulated in Decree 43/2017/NĐ-CP. For agricultural machinery, the label should contain the following information:

  • Exporter's information (address and company name).

  • Importer's information (address and company name).

  • Product name and related information.

  • Capacity and year of manufacture.

  • Origin of the goods.

Ensuring the correct placement of labels on goods is also crucial. The carrier must ensure that labels are placed on surfaces such as cartons, wooden crates, or product packaging. This helps save time during customs inspections when completing agricultural machinery import procedures.

In addition to these basic regulations, for retail goods on the market, additional information such as manufacturer, quantity, technical specifications, production date, and safety warnings must be added.

Non-compliance with labeling regulations can expose importers to various risks, including fines as per regulations, loss of the right to enjoy special import tax benefits, and the risk of goods being lost or damaged due to lack of necessary information. Therefore, compliance with labeling regulations is crucial, and we recommend strict adherence to all these regulations when completing agricultural machinery import procedures. If you need more information or detailed advice, please contact H-Cargo via the hotline or email.


III. HS Code and Import Tax


1. HS Code for Agricultural Machinery

Determining the HS code is an essential and cannot be overlooked step when importing any type of goods. The HS code not only determines the import tax rate but also applies to calculating value-added tax (VAT) and other import policies. To accurately determine the HS code for agricultural machinery, you need to understand the characteristics of the goods: Material, composition, and product characteristics. Agricultural machinery is a generic term to determine the HS code for each type of agricultural machinery. Please check for each type below:

  • HS code for plows: 8432.30.00

  • HS code for harrows: 8432.40.00

  • HS code for seeders: 8432.41.00

  • HS code for planters: 8432.42.00

  • HS code for cultivators: 8432.43.00

  • HS code for tractors: 8701.91.10, 8701.91.20, 8701.92.10, and 8701.92.20


2. Import Tax for Agricultural Machinery

After determining the HS code, it is essential to understand the import tax rate for agricultural machinery. Import tax rates for agricultural machinery vary depending on the type and characteristics of the goods.

  • Import tax on plows (HS code 8432.30.00): 5%

  • Import tax on harrows (HS code 8432.40.00): 5%

  • Import tax on seeders (HS code 8432.41.00): 5%

  • Import tax on planters (HS code 8432.42.00): 5%

  • Import tax on cultivators (HS code 8432.43.00): 5%

  • Import tax on tractors (HS code 8701.91.10, 8701.91.20, 8701.92.10, and 8701.92.20): 0%


3. Value-Added Tax (VAT) for Agricultural Machinery

In addition to import tax, agricultural machinery is subject to VAT at a standard rate of 10%. VAT is calculated based on the customs value plus import tax.


IV. Import Procedures for Agricultural Machinery


1. Customs Declaration

The customs declaration is a mandatory procedure when importing goods, including agricultural machinery. This process requires the submission of necessary documents, and it is essential to ensure accuracy to avoid delays or penalties. The required documents for customs declaration include:

  • Customs declaration form.

  • Commercial invoice.

  • Packing list.

  • Bill of lading.

  • Certificate of origin.

  • Technical specifications and product manuals.

  • Import permit (if required).

  • Other relevant documents.


2. Customs Clearance

Customs clearance is the process of getting the necessary clearance from customs authorities to release the imported goods. It involves submitting the required documents and paying the applicable taxes and duties. To facilitate customs clearance for agricultural machinery, it is crucial to:

  • Ensure that all required documents are complete and accurate.

  • Pay the applicable import tax and VAT.

  • Comply with labeling regulations.

  • If needed, obtain an import permit.


3. Payment of Import Tax and VAT

Import tax and VAT must be paid to customs authorities to complete the import procedures. Payment can be made through banks or other approved payment methods.


4. Release of Goods

Once customs clearance is obtained and all necessary payments are made, the customs authorities will release the imported agricultural machinery. This marks the completion of the import procedures.


V. Limitations and Benefits of Agricultural Machinery Import


1. Limitations

Importing agricultural machinery is subject to certain limitations, including:

  • Age restriction for used machinery.

  • Compliance with labeling regulations.

  • Obtaining import permits if required.

  • Payment of import tax and VAT.

2. Benefits Importing agricultural machinery can offer several benefits, such as:

  • Access to modern and efficient farming equipment.

  • Increased productivity and efficiency in agriculture.

  • Integration of advanced technologies in farming practices.

  • Support for agricultural development and growth.


Conclusion

Understanding the policies, regulations, and procedures for importing agricultural machinery is crucial for businesses and individuals involved in the agriculture sector. By following the correct steps and ensuring compliance with all relevant requirements, you can successfully import agricultural machinery and contribute to the development of the agricultural industry in Vietnam. If you have any questions or need assistance with agricultural machinery import procedures, feel free to contact H-Cargo for professional advice and support. We are committed to providing reliable and efficient logistics solutions for your business success.

Contact us: Mr. Kate Cu - Sales Executive Email: kate.cu@hcargovn.com Hotline/Zalo/Whatsapp: +84 39 266 3325

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