In the modern industrial era, importing machinery from China has become an attractive opportunity for businesses. However, this process also presents many challenges in terms of customs procedures. This article will help you understand the customs procedures for importing machinery from China, as well as the opportunities and challenges that come with it.
I - Introduction
1. The development of machinery manufacturing and import industry from China
China has quickly become one of the world's leading countries in manufacturing and exporting machinery. With significant advancements in the manufacturing industry, China not only produces and supplies various types of machinery but also offers competitive prices.
2. Importance of customs procedures in the process of importing machinery
Customs procedures involve the inspection and processing of cargo when importing or exporting across national borders. For importing machinery from China, customs procedures play a crucial role in ensuring that the importation is carried out according to regulations and is safe for both consumers and businesses.
II - Challenges when importing machinery from China
1. Import eligibility management and customs clearance tracking
The customs clearance process when importing machinery from China often encounters high standard requirements and complicated processes. Businesses need to make sure they understand these regulations and requirements to avoid violations and ensure smooth import.
2. Risk of violating regulations on intellectual property and copyright
There are many cases of intellectual property and copyright violations when importing machinery from China. Failure to comply with intellectual property and copyright regulations can lead to legal disputes and impact business operations.
3. Risks in choosing suppliers and controlling product quality
During the process of importing machinery from China, selecting reliable suppliers and controlling product quality is a significant challenges. The vast and diverse Chinese market can make it difficult to accurately assess the quality and reliability of suppliers.
III - Opportunities for importing machinery from China
1. Diversified choices and competitive prices
One of the significant opportunities when importing machinery from China is the diversified choices and competitive prices. China has a vast supply of various types of machinery, from affordable products to advanced technological ones. This allows businesses to have multiple suitable options according to their needs and compete in the market.
2. Advanced technology and high quality
China has made significant progress in technology and machinery manufacturing. Importing machinery from China provides opportunities to access advanced technology and high-quality products, enhancing the efficiency and precision in the production operations of businesses.
3. Expand business scope and supply to domestic market
Importing machinery from China also creates opportunities to expand the business scope and supply products to the domestic market. With the rapid development of the economy, businesses can take advantage of this opportunity to expand their business scale and reach potential domestic customers.
IV - Steps to follow for customs procedures when importing machinery from China
1. HS code of machinery, production line 100% new
All imported cargo need to be accurately classified with HS codes. This is an essential basis for importers to understand the necessary policies and procedures.
For 100% new machinery, you need to look up the HS code in the current Export and Import Tax Schedule. Determining the HS code for cargo is based on their actual characteristics, nature, and composition.
Currently, machinery and production lines are classified under Chapters 84 and 85 in the Tax Schedule. If the imported cargo has a specific HS code, you will apply according to that code. Otherwise, if there is no designated code, you will apply the 6 rules to determine the HS code.
Therefore, the HS codes will vary for each type of machinery and actual production line you import.
2. Regulations on importing 100% new machinery and production lines
According to current regulations, 100% new machinery is not included in the List of Prohibited Cargo for export or import. Therefore, you can proceed with the importation as normal cargo.
However, for certain types of machinery listed in the specialized management category of Ministries, when importing, you must follow the quality inspection procedures as specified.
To determine whether 100% of newly imported machinery belongs to the category that requires specialized management, you can refer to the following documents:
Ministry of Information and Communications: Decision 2261/QD-BTTTT on the announcement of HS codes for product categories under the responsibility of the Ministry of Information and Communications.
Ministry of Science and Technology :
Decision 2711/QD-BKHCN on the announcement of product categories under the responsibility of the Ministry of Science and Technology.
Decision 366/QD-BKHCN on the supplementary announcement of product categories under the responsibility of the Ministry of Science and Technology.
Ministry of Public Security : Circular 08/2019/TT-BCA on the list of products that may cause safety hazards under the responsibility of the Ministry of Public Security.
Ministry of Agriculture and Rural Development : Circular 16/2021/TT-BNNPTNT on the list of products that may cause safety hazards under the state management responsibility of the Ministry of Agriculture and Rural Development.
Ministry of Labor, War Invalids and Social Affairs : Circular 01/2021/TT-BLDTBXH on the list of products that may cause safety hazards under the state management responsibility of the Ministry of Labor - Invalids and Social Affairs.
Ministry of Transport : Circular 12/2022/TT-BGTVT on the list of products that may cause safety hazards under the state management responsibility of the Ministry of Transport.
Ministry of Industry and Trade : Consolidated Document 13/VBHN-BCT on the list of products that may cause safety hazards under the state management responsibility of the Ministry of Industry and Trade.
If you import 100% newly imported machinery from the attachments of the above documents, you will need to undergo quality inspection procedures during the import process. The import procedures for machinery in this case will follow the prescribed guidelines.
3. Quality inspection documents (if any)
In the case of 100% new machinery on the List of specialized management of ministries, when importing, you will need to register for quality inspection. This process requires the preparation of a set of quality control records that include the following documents:
Customs declaration form
List of cargo, packaging (Packing List)
Bill of lading (B/L)
Introduction, description, and technical documents as required by the inspection standards
Quality inspection registration form
Authenticated copies of quality certificates, related technical documents
After completing the preparation of a complete set of quality inspection documents, you can proceed with the import procedures for 100% newly imported machinery as usual.
4. Import customs procedure documents
Based on Article 5, Section 1, Circular 39/2018/TT-BTC (amending Article 2, Section 16, Circular 38/2015/TT-BTC), customs documents for imported cargo include:
Import customs declaration form (printed from customs declaration software)
Bill of lading
Certificate of origin: original copy, if available
List and description of manufactured cargo, catalogs,...
Quality inspection results, synchronization,...
After preparing the complete import customs documents, you will submit the documents and declaration to the Customs authority. This agency will receive, process, inspect, and classify the declaration. Typically, there are three classification channels as follows:
Green channel: Documents and cargo meet the conditions for customs clearance.
Yellow channel: Cargo are not cleared and requires verification of actual documents.
Red channel: Cargo are not cleared and require verification of both documents and actual cargo.
When the shipment meets the conditions for customs clearance, you will pay taxes for the cargo and proceed with the shipment
5. Policy on import tax on machinery and production lines
When importing 100% newly imported machinery, you will be subject to two types of taxes: import tax and value-added tax (VAT). To determine the specific tax rate, you need to rely on the actual imported cargo and their corresponding HS codes.
Import duties and VAT rates will vary from item to item. Therefore, to avoid confusion in tax calculation, you need to carefully study this information in the applicable Import and Export Tariffs.
Note: - For the case of enjoying special preferential import tax, that is when the imported cargo originate from countries that have signed Free Trade Agreements with Vietnam and meet the standards. regulations. Therefore, you should carefully study the information to know whether imported cargo are eligible for preferential import tax. - For cargo imported from China and provided with original CO form E documents, the majority will enjoy a special preferential tax rate of 0%.
6. Regulations on uniform inspection
In the case of machinery and production lines being imported at once, businesses need to conduct synchronized inspections to demonstrate that individual machines are part of the same production line.
In the case of machinery and production lines imported in multiple batches (from the same port or multiple ports, with different origins from one or more different factories), businesses need to register the inventory of separate parts and components of the machinery electronically (according to Form 03/DMTBĐKNK-TDTL/2015 issued together with this decree) along with a Reverse Deduction Tracking Note for the separate parts and components of the machinery (according to Form 04/PTDTL-TBNC/2015 issued together with this decree) before importing the first batch. After importing the entire batch, businesses will proceed with synchronized inspections to demonstrate that individual machines are part of the same production line.
Decree 14/2015/TT-BTC: Guidelines for cargo classification, analysis for cargo classification; quality inspection, food safety inspection for export and import cargo.
Decree 17/2021/TT-BTC: Amendment and supplementation of some articles in Decree 14/2015/TT-BTC.
Note: For used machinery, refer to the document specified at: - 18/2019/QĐ-TTg: Regulations on the import of used machinery, equipment and technological lines - - 28/2022/QD-TTg: Amendment and supplementation of some articles of Decision 18/2019/QD-TTg dated April 19, 2019, on the import of used machinery, equipment, and technology lines.
V - Important notes when importing machinery from China
1. Understand current customs regulations and laws
Understanding and complying with current customs regulations and laws is crucial to avoid violations and legal risks when importing machinery from China. Businesses should have a solid understanding of customs, taxes, and certifications to ensure compliance with the correct procedures.
2. Choose a reliable supplier
To ensure the quality and reliability of imported machinery from China, businesses should choose a trustworthy supplier. It is advisable to gather information about reputable suppliers, consider feedback from previous customers, and request product samples before making import decisions.
3. Inspect quality and ensure warranty
Prior to engaging in import transactions, businesses should inspect the quality of the machinery and ensure that the supplier has a reasonable warranty policy. This will help ensure that the imported machinery meets technical requirements and is ready for use in production activities.
VI - Conclusion
Importing machinery from China presents significant opportunities for businesses to expand their operations, access advanced technology, and meet market demands. However, there are also challenges and risks related to customs procedures, product quality, and compliance with legal regulations. Therefore, businesses need to have a solid understanding of customs procedures, choose reliable suppliers, and inspect product quality to ensure success in importing machinery from China.
Choosing a reputable logistics service provider and understanding customs clearance procedures for machinery/production line items play a crucial role. Businesses should select a trusted logistics company to provide guidance and address any concerns before proceeding with the importation.
See also: Transporting machinery/oversized cargo