Procedures for importing LED chips

1. Import policy of led chips of all kinds

The process, procedures and policies for importing led chips are specified in the following legal documents:

• Circular 38/2015/TT-BTC dated 25/3/2015 amending and supplementing 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, led chips are not on the list of goods banned from import. When carrying out procedures for importing led chips, it is necessary to pay attention to the following points:

• Led chips are electronic components, they are prohibited from being imported for used types;
• When importing, goods must be labeled according to 43/2017/ND-CP;
• Identify the correct hs code to determine the right tax and avoid penalties;

Above are all the legal regulations related to the procedure for importing led chips. If you do not fully understand the above regulations, please contact the hotline or hotmail for advice.

2. Determine the HS code of imported led chips

Determining the HS code is the most important step when importing led chips. Identifying the hs code will determine import duties, VAT, and import policies. In order to determine the correct hs code, you need to understand the characteristics of the goods: The material, composition and characteristics of the product.

2.1 Led Chip HS Code

The hs code (Harmonized System) is a series of codes that are common to all goods worldwide. Between different countries in the world, only the number of tails differs. So the first 6 digits of the worldwide hs code for an item are the same. Here, Just In Time would like to share with you a list of hs codes for led chips of all kinds.

2.2 Risks of applying the wrong HS code

Determining the correct HS code is very important when importing LED chips of all kinds. Determining the wrong HS code will bring certain risks such as:

• There are many different types of led chips, it is necessary to determine the correct hs code so as not to be confused between the types of led chips;
• Delay in customs clearance: Incorrect declaration of HS codes can lead to delays in customs procedures, as time is needed to check and verify accurate information about the type of goods;
• Being fined for falsely declaring the hs code according to Decree 128/2020/ND-CP;
• Delay in 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 cycles of the business;
• In case of incurring import tax, they will face a fine of at least 2,000,000 VND and a maximum fine of 3 times the tax amount;

To accurately identify the hs code for the type of led chip of all kinds. Please contact the hotline or hotmail for advice.

3. Import tax on led chips

The import duty of the goods depends on the hs code of the item. Each HS code has a specific tax rate. Here, Just In Time would like to introduce how to calculate import tax and notes when determining taxes on led chips.

3.1 How to calculate led chip import tax

The import tax on led chips is calculated according to the same formula as other items. There are two types of import duties of this item, namely import duty and import VAT.

Import tax determined by HS code Import tax is calculated according to the formula:
Import tax = CIF value x % of tax rate

Import VAT is determined according to the formula:
Value Added Tax = (CIF Value + Import Tax) x % of VAT

The CIF value is determined by the ex-factory value of the goods plus all costs to bring the goods to the first border gate of the importing country. Import tax is an expense that is included in the cost of goods sold for an order. Therefore, you must check the correct HS code to get the best import tax code.

3.2 Notes when determining the import tax on led chips

When determining the import tax of led chips, it is necessary to pay attention to the following points:

• For countries that have signed trade agreements with Vietnam such as: Europe, India, Australia, Chile, China, South Korea, Japan, ASEAN countries. It is necessary to note that the special preferential tariff rate is usually 0%;
• To enjoy preferential tax rates, a certificate of origin is required;
• The taxable value is the CIF value. For orders purchased under other conditions. When calculating import tax, the value must be converted to the CIF value for import tax calculation;
• Import taxes will also be subject to VAT;

Those are the notes when calculating import tax for led chips. If you don't understand how to calculate taxes and the notes above. Please contact the hotline or hotmail for advice.

4. Set of LED chip import procedures

The dossier for importing led chips in particular, carrying out import procedures for other items in general. Specified in Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018:

• Customs declaration;
• Sale contract;
• Commercial invoices;
• Packing list;
• Bill of lading;
• Certificate of origin (C/O) if any;
• Catalogue (if any), and other documents if required by customs;

Above are all the documents in the dossier for importing led chips. The following documents are the most important: Customs declaration, bill of lading, commercial invoice. For other documents, they will be provided upon request from customs.

A certificate of origin is a document that is not required. However, this is a very important document for importers to enjoy preferential import tax rates. Therefore, the importer should negotiate and ask the seller to provide a certificate of origin.

If you don't understand the application for importing led chips. Please contact the hotline or hotmail for advice.

5. Procedures for importing led chips

The process of importing led chips as well as other items. It is very specifically stipulated in Circular 38/2015/TT-BTC dated 25/3/2015 amended and supplemented 39/2018/TT-BTC dated 20/04/2018. We've summarized the short description steps so you can get a picture of the big picture.

Step 1. Customs
declaration After having all import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival and identification of HS code. Then you can enter the declared information into the customs system via software.

The declaration of customs declarations on customs software. It requires the importer to have an understanding of input into the software. You should not file a customs declaration on your own without a clear understanding of the job. The arbitrary declaration may have wrong 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 the goods arrive 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.

This is the most important step in the procedure for importing led chips of all kinds. If the wrong content on the declaration is made, especially the name of the goods, the origin and HS code, the enterprise may face fines from the customs office.

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 declaration flow, 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, take steps to open the declaration.

The opening of the declaration must be carried out as soon as possible, within 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 15 days the declaration will be cancelled and you will face a penalty fee from customs.

Note: After having the official declaration, it is necessary to contact the customs sub-department to carry out the procedures for importing led chips. It is not recommended to leave the declaration for a long time before bringing it down for import procedures.

Step 3. Customs clearance of the customs
declaration 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 your customs declaration to clear your goods.

In some cases, the declaration will be released to take the goods to the warehouse for storage first. After completing all the dossiers, the customs will proceed to customs clearance of the customs declaration. When the declaration has not been cleared, it is necessary to carry out procedures for customs clearance. If you are overdue, you will face a penalty fee and it will take a lot of time.

Step 4. Bring the goods to the warehouse for preservation and use
of the customs clearance declaration, then proceed to liquidate the declaration and carry out the necessary procedures to bring the goods to the warehouse. In order to be able to pick up the goods smoothly, you need to prepare a full drop order, means of transport and goods that are accepted for passing through the surveillance area.

Above are the four steps to do the procedure for importing led chips. If you do not understand or have questions, please contact the hotline or hotmail for advice.

6. Notes when importing led chips

When carrying out procedures for importing led chips, it is necessary to pay attention to the following:

• Import tax is an obligation to be fulfilled to the state;
• The VAT of led chips is 8%;
• Search for reputable suppliers, choose the right form of payment;
• When importing led chips, they must be labeled according to 43/2017/ND-CP;
• Identify the correct hs code to determine the right tax and avoid penalties;
• Led chip machines are used electronic components on the list of goods banned from import;

If you have difficulties when clearing customs, 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.

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