Procedures for importing decorations

1. Decorations import policy

The process of carrying out procedures for importing decorations is 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, decorations are not on the list of goods banned from import. However, when carrying out procedures for importing this item, it is necessary to pay attention to the following points:

• Used decorations on the list of goods banned from import;
• When importing decorations, they must be labeled according to 43/2017/ND-CP;
• Identify the correct hs code to determine the right tax and avoid penalties;

The above are the policies regulating the import of decorations. If you do not fully understand the above policies. Please contact the hotline or hotmail for advice.

2. Determine the decorations HS code

Determining the HS code is the most important step when importing decorations. 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: Material, composition and characteristics of the product.

2.1 HS Code Decorations of All Kinds

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 the hs code of decorations.

HS Code	Describe
3926.40.00	Plastic ornaments
3926.90.99	Other plastic ornaments, unsorted
4420.10.00	Figurines, decorative carvings made of wood
4420.90.00	Other wooden decorations (photo frames, decorative items...)
6913.10.00	Porcelain ornaments
6913.90.90	Other ceramic and porcelain decorations
7013.99.90	Glass ornaments (vases, glass ornaments)
7020.00.90	Other Glass Ornaments
8306.21.00	Precious metal ornaments (silver-plated, copper-plated...)
8306.29.00	Plain metal ornaments
9505.10.00	Festive decorations (Christmas ornaments, Christmas decorations, Halloween...)
9505.90.00	Other festival decorations (Tet decorations, cultural festivals)
6304.93.00	Fabric ornaments (coverings, covers, decorative fabrics)
9703.00.00	Artwork used for decorations (paintings, canvases, etc.)
9701.10.00	Oil paintings, original paintings for decorations

2.2 Risks of applying the wrong HS code

Identifying the correct HS code is very important when importing decorations. Misidentifying the hs code will bring certain risks to you, such as:

• 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 correctly identify the hs code for a specific type of decorations. Please contact the hotline or hotmail for advice.

** See more Procedures for importing glasses, cups, teacups, bowls

3. Import tax on decorations

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 decorations.

3.1 How to calculate the import tax on decorations

Import taxes on decorations are 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 % 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 decorations

When determining the import tax on decorations, 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, Korea, Japan, ASEAN countries. It is necessary to note that the special preferential tax rate is usually 0%;
• To enjoy preferential tax rates, a certificate of origin is required;
• The taxable value is the CIF value. For purchases 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 considerations when calculating import taxes on decorations. If you don't understand how taxes are calculated and the notes above. Please contact the hotline or hotmail for advice.

4. Labeling of imported goods

Labeling on imported goods is not a new regulation. However, since Decree 128/2020/ND-CP was issued, the labeling of imported goods has been more closely supervised. Labeling of goods aims to help administrative agencies manage goods, determine the origin and unit responsible for the goods. Therefore, labeling on goods is one of the indispensable stages when carrying out procedures for importing decorations.

4.1 Label content

In addition to labeling, the content of the label is also very important. The content of labels of goods items is specified in Decree No. 43/2017/ND-CP. For decorations, the content of a full label includes the following information:

• Information of the exporter's family (address, company name);
• Information of the importer (address, company name);
• Name of goods and commodity information;
• Origin of goods;

Those are the basic label content that needs to be affixed to the goods. The information presented must be in English or other languages that must be translated. When carrying out procedures for importing decorations, if you encounter a red channel, the customs inspection will pay great attention to the content of the label above.

4.2 Labeling Placement on Goods

Applying labels to goods is necessary, but applying them in the right place is more important. When importing, the label of the goods needs to be affixed to the surfaces of the package such as: On cartons, on wooden bales, on product packaging. Or any place as long as it is convenient to check and easy to see. Labeling in the right place will help save time when carrying out procedures for importing decorations.

For retail goods on the market, it is necessary to show more information. Such as manufacturer, quantity of goods, specifications, production dates, safety warnings.

4.3 Risks encountered when not labeling

Labeling goods is caught in accordance with the law. If the goods are not labeled when imported or the contents of the goods labels are wrong. Then the importer faces the following risks:

• Fined as prescribed, the fine level is specified in Article 22 of Decree 128/2020/ND-CP;
• Not entitled to special preferential import duties because the certificate of origin will be rejected;
• Goods are easily lost or damaged due to the absence of warning labels for loading, unloading and transportation;

Given the above risks, we recommend that you put a label on the goods when importing decorations. If you don't fully understand the labeling regulations. Please contact the hotline or hotmail for advice.

5. Dossier of procedures for import of decorations

A set of dossiers for importing decorations in particular, 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;
• Bill of lading;
• Commercial contract (sale contract);
• Commercial invoices;
• Certificate of origin (c/o) if any;
• Packing list;
• Catalogs;

Above are all the documents in the dossier for importing decorations. 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 decorations. Please contact the hotline or hotmail for advice.

** See more Procedures for importing all kinds of scissors

6. Procedures for importing decorations

The process of importing decorations 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 decorations. All declared contents will be pushed to the customs system. If there is an error affecting the tax or origin of the goods. Then importers can face fines under customs laws. 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 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 an official declaration, it is necessary to contact the customs sub-department to carry out procedures for importing decorations. 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 decorations. If you do not understand or have questions, please contact the hotline or hotmail for advice.

7. Notes when importing decorations

When importing decorations, it is necessary to pay attention to the following points:

• Import duty is an obligation that the importer must fulfill to the state;
• The import tax of decorations is quite high, when negotiating with the seller, it is recommended to provide a certificate of origin to receive tax incentives;
• 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;
• Goods may only be sold on the market when the declaration is cleared from customs;
• It is recommended to choose a reputable supplier, choose the right payment method to ensure safety;

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.

 

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

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