Procedures for importing furniture

1. Policies on procedures for importing furniture

Policies on importing furniture in particular, importing other items in general. It is stipulated in the following legal documents:

• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Circular No. 14/2015/TT-BTC dated 30/1/2015;
• Decree No. 187/2013/ND-CP dated 20/11/2013;
• Official Letter 8119/TCHQ-TXNK dated 28/12/2020;
• Decree No. 43/2017/ND-CP dated 14/4/2017;
• Decree 69/2018/ND-CP dated 15/05/2018;
• Decree 128/2020/ND-CP dated 19/10/2020;

According to the above legal documents, furniture items are not on the list of goods banned from import. For used goods, they are on the list of prohibited imports. When carrying out procedures for importing furniture for bedrooms, bathrooms, kitchens, and living rooms, it is necessary to pay attention to the following points:

• Used furniture banned from import;
• When importing furniture, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;

Above are all legal documents related to procedures for importing furniture. If you do not understand the above documents, please contact the hotline or hotmail for advice.

2. Determine the furniture hs code

Determining the hs code is the most important step when carrying out furniture import procedures. Identifying the HS code will determine the import tax, VAT and import policy. To determine the correct furniture HS code, you need to understand the characteristics of the goods: Material, composition and characteristics of the product.

2.1 Furniture hs code

HS (Harmonized System) code is a series of codes that are common to all goods around the world. Between different countries in the world, there is only a difference in the number of tails. Therefore, 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 table of furniture codes of all kinds.

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out furniture import procedures. Identifying the wrong hs code will bring certain risks to you such as:

• Delay in customs procedures: Incorrect declaration of HS codes can lead to delays in customs procedures, as it takes time to check and verify accurate information about the type of goods;
• Shall be fined for incorrectly declaring hs codes according to Decree 128/2020/ND-CP;
• Delayed delivery: If the goods are found to have declared the wrong HS code, the customs authority may request correction or clarification of information. This can lead to delays in the delivery process and affect the production and business cycle 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 correctly determine the hs code for a specific type of wood furniture. Please contact the hotline or hotmail for advice.

3. Furniture import tax

Determining import taxes is an important task when carrying out furniture import procedures. The import tax 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 import tax.

3.1 How to calculate furniture import tax

Import taxes are calculated according to the same formula as other items. There are two types of import tax on this item, namely import tax and import VAT.

Import tax determined according to the import tax hs code is calculated according to the formula:
Import tax = CIF value x % tax rate

Import VAT is determined according to the formula:
Value Added Tax = (CIF Value + Import Tax) x % 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 the cost included in the cost of goods sold of an order. Therefore, you must check the correct HS code to get the best import tax code.

3.2 Notes when determining furniture import tax

When determining furniture import tax, 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 tax rate is usually 0%;
• To enjoy the preferential tax rate, 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 into CIF value for import tax calculation;
• Import taxes will also be subject to VAT;

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

4. A set of dossiers for carrying out procedures for importing furniture

The set of dossiers for carrying out procedures for importing furniture in particular and importing other items in general. Stipulated in Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018. The following is a set of dossiers for carrying out procedures for importing furniture:

• Customs declaration;
• Commercial invoice;
• Bill of lading;
• Packing list;
• Certificate of orignal;
• Sale contracts;
• Catalog (if any);

In the dossier for carrying out the above furniture import procedures. The following documents are the most important: Customs declaration, commercial invoice, bill of lading. Other documents will have to be provided upon request from customs. Certificate of origin is an optional document. However, in order to enjoy the special preferential import tax rate, the buyer should ask the seller to provide it. The special preferential import tax rate is usually 0%. If you do not fully understand the documents in the furniture import procedure dossier above. Please contact the hotline or hotmail for advice.

5. Procedures for importing furniture

The process of importing furniture as well as many other items. It is very specifically stipulated in Circular 38/2015/TT-BTC dated 25/3/2015 amending and supplementing 39/2018/TT-BTC dated 20/04/2018. We summarize the steps in a short description so that you can visualize the big picture. The following are the main steps to carry out procedures for importing furniture of all kinds.

Step 1. Declaration of customs
declaration After having complete import and export documents: Contract, commercial invoice, packing list, sea waybill, certificate of origin, notification of arrival and identification of hs code of furniture. Then the declaration information can be entered into the customs system via the customs declaration software.

The declaration of customs declarations on customs software. Importers are required to have an understanding of data entry into the software. Customs declarations should not be filed on your own when you are not familiar with the job. The self-declaration may be wrong in 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 of arrival of goods 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 side.

This is the most important step in the process of importing furniture. All declared contents will be pushed to the customs system. If there is an error affecting taxes or the origin of goods. Then the importer may face fines according to the customs law. Therefore, it is necessary to pay attention to the information entered on the declaration such as HS code, tax rate, name of goods, origin.

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 flow of declarations, 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, the steps to open the declaration form are taken.

The opening of the declaration must be carried out as soon as possible, no later than 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 more than 15 days, the declaration will be cancelled and you will face a penalty fee from customs.

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

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

In some cases, the declaration will be released to bring the goods to the warehouse for pre-storage. After completing the dossier, the customs will proceed to customs clearance of the customs declaration. When the declaration has not yet been cleared, it is necessary to carry out procedures for customs clearance. If you are past the deadline, you will face a penalty fee and it will take a lot of time.

Step 4. Bringing goods for preservation and use
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 the customs declaration to clear the goods. The customs clearance declaration shall proceed with the liquidation step of the declaration and carry out the necessary procedures to bring the goods to the warehouse. In order to be able to pick up your goods smoothly, you need to have a full release order, a means of transport and an accepted order for the goods to pass through the monitoring area.

Above are the four steps to carry out furniture import procedures. If you do not understand the steps, please contact us via hotline or hotmail for advice.

6. Notes when importing furniture

When importing furniture, you need to keep the following points in mind:

• Import tax is an obligation that must be fulfilled for the state;
• Import tax on furniture, so proof of origin is very important to enjoy special preferential tax rates;
• Original documents need to be prepared in advance to avoid storage and storage;
• Labeling goods is a must when carrying out import procedures;
• Determining the furniture HS code is very important when carrying out import procedures;

If you have difficulties in customs clearance, 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.

JUST IN TIME JOINT STOCK COMPANY

Address: No. 5, Dong Da, Tan Son Hoa Ward, Ho Chi Minh City.

Hotline: +84 83 9910066

Email: info@justintimevn.com

Facebook: https://www.facebook.com/justintimevn