Procedures for importing packaging machine

1. Packaging machine import policy

The process, procedures and policies on import of packaging machines are specified in the following legal documents:

• Decision 04/2017/QD-TTg dated 09/3/2017;
• Decree No. 43/2017/ND-CP dated 14/4/2017;
• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Circular 18/2019/QD-TTg dated 19/04/2019
• Decision 3810/QD-BKHCN dated 18/12/2019;
• Decree 128/2020/ND-CP dated 19/10/2020;

According to the above legal documents, packaging machines are not on the list of goods banned from import. When carrying out procedures for importing packaging machines, the following points should be noted:

• Used goods, the age of the equipment must not exceed 10 years;
• When importing packaging machines, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;

The above is the entire legal document regulating the procedures for importing packaging machines. If you do not understand the above regulations, please contact the hotline or hotmail for advice.

2. Determine the HS code of the packaging machine

Determining the HS code is the most important step when carrying out the procedure for importing packaging machines. Identifying the HS code will determine the import tax, VAT and import policy. To determine the correct packaging machine HS code, you need to understand the characteristics of the goods: Capacity, material, operating principle of the product.

2.1. Determination of packaging machine 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 the packaging machine hs code table.

HS Code	Description
8422.40.10	Packaging Machine for Food or Pharmaceutical
8422.40.20	Packaging machines for non-food/pharmaceutical industrial use
8422.40.90	Other types (not in the above specific group)

According to the import and export tariff, the HS code of the packaging machine is 84220000. Import tax: 5%, can be reduced to 0% if the shipment meets the criteria of origin according to trade agreements. VAT: 8%.

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out packaging machine 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 accurately identify the hs code for a specific type of packaging machine. Please contact the hotline or hotmail for advice.

** See more Procedures for importing bottling machines

3. Import tax of packaging machine

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 taxes on packaging machine products.

3.1 How to calculate import tax on packaging machines

Import tax on packaging machines is 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 import tax on packaging machines

When determining the import tax of packaging machines, 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 import tax for packaging machines. If you don't understand how to calculate taxes and the notes above. Please contact the hotline or hotmail for advice.

4. Labeling of imported goods

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

4.1 Label content

In addition to having to put a label, the label content is also very important. The content of labels of goods items is specified in Decree No. 43/2017/ND-CP. For packaging machine products, the contents of a full label include the following information:

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

Those are the basic label contents that need 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 packaging machines, 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

Labeling the goods is necessary, but it is more important to put them in the right place. When importing, goods labels need to be pasted on 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 position will help save inspection time when carrying out procedures for importing packaging machines of all kinds.

For retail goods on the market, it is necessary to show more information. Such as manufacturer, quantity of goods, specifications, date of manufacture, 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 content of the goods label is wrong. The importer faces the following risks:

• Being fined according to regulations, the fine level is specified in Article 22 of Decree 128/2020/ND-CP;
• Not entitled to special preferential import tax 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;

With the above risks, we recommend that you put a label on the goods when checking in for the import of packaging machines. If you don't fully understand the regulations on labels. Please contact the hotline or hotmail for advice.

5. Packing machine import dossier set

The set of dossiers for carrying out procedures for importing packaging machines in particular, carrying out procedures for 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.

• Customs declaration;
• Sale contract;
• Commercial invoice;
• Packing list;
• Bill of lading;
• Certificate of origin (if any);
• Catalog (if any), and other documents if required by customs;

Above are all documents used to carry out procedures for importing packaging machines. The most important are customs declarations, commercial invoices, bills of lading. Other documents will be supplemented if requested by the customs office.

Preparing documents before importing packaging machines is extremely important. For original documents such as bills of lading, certificates of origin, the importer must ask the seller to courier in advance. Avoid waiting for documents, which can lead to container storage and cargo storage.

If you do not fully understand the documents listed above, you can contact our hotline or hotmail for advice.

** See more Procedures for importing pressure gauges

6. Packaging machine import process

The process of importing packaging machines 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.

Step 1. Declaration of
customs declaration After having all import and export documents: Contract, commercial invoice, packing list, bill of lading, certificate of origin, notification of arrival of goods and identification of the packaging machine HS code. Then the declared information can be entered into the customs system via 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 packaging machines. 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 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 packaging machines. 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 the customs clearance declaration, the declaration shall be liquidated and necessary procedures shall be carried out 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 is the process of steps to carry out procedures for importing packaging machines. If you do not understand the steps, please contact us via hotline or hotmail for advice.

7. Notes when importing packaging machines

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

• Import tax is an obligation that must be fulfilled with the state;
• The VAT of packaging machines is 8%;
• When importing packaging machines, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;
• Used packaging machines must not exceed 10 years old before they are allowed to be imported;

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, Ward 4, Tan Binh, Ho Chi Minh City.

Hotline: +84 83 9910066

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