Procedures for importing essential oils

1. Essential oils import policy

When importing any item, the most important thing is to learn about the import policy of that item. Procedures for importing essential oils are specified in the following legal documents:

• Circular 48/2018/TT-BYT dated 28/12/20218;
• Circular 45/2016/TT-BYT dated 20/12/2016;
• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Circular 06/2018/TT-BYT dated 06/04/2018;

As divided above, there are three purposes for the import of essential oils. For each purpose, the procedure process will be different as follows:

• Procedures for importing essential oils used in spas: Considered as ordinary goods, import procedures proceed like normal items;
• Procedures for importing essential oils for medicinal purposes: Must have a license from the Ministry of Health, quality inspection according to the regulations of the Ministry of Health;
• Procedures for importing essential oils used in cosmetics: Must make cosmetic announcements as prescribed;

Above are all legal provisions related to essential oil import procedures. If you do not fully understand the above regulations, please contact the hotline or hotmail for advice.

2. Determine the essential oil hs code

Lookup the hs code is the most important job before carrying out the procedure for importing essential oils. To be able to accurately identify the hs code, it is necessary to understand the properties, ingredients, functions, and raw materials from which the product is produced.

2.1 Essential oil 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 introduce to you the essential oil hs code according to the table below:

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out procedures for importing essential oils. 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;
• 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;
• Shall be fined for incorrectly declaring hs codes according to Decree 128/2020/ND-CP;
• 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 each specific essential oil. Please contact the hotline or hotmail for advice.

3. Import tax on essential oils

Determining taxes is an extremely important step in the process of importing essential oils. There are two types of import taxes on essential oils: Import VAT and import tax. Import tax is calculated as the CIF value of the goods multiplied by the % of the import tariff.

The formula for calculating import tax on essential oils is as follows:
Import tax = CIF value x % tax rate

The CIF value is equal to the value of the goods ex-shipped, plus the total cost of bringing the goods to the first import border gate in the importing country.

In addition to import tax, there is also import VAT, import VAT is calculated according to the formula below:
VAT = (CIF value + import tax) x import VAT rate.

For essential oils used in spas and cosmetics, the VAT rate for essential oils is 10%. For essential oils used as medicines, the VAT rate is 5%.

There are many different types of essential oils, so when carrying out procedures for importing essential oils, you need to be very careful when choosing an HS code. The import duty of essential oils depends on the selected essential oil hs code. Choosing the wrong hs code can change the import tax, you must be very careful when choosing the hs code.

4. Essential oil import dossier set

The set of dossiers for carrying out procedures for importing essential oils in particular and 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. The dossier of import of essential oils used in spas includes the following documents:

• Customs declaration;
• Commercial invoice;
• Bill of lading;
• Packing list;
• Sale contract;
• Certificate of Origin (C/O) if any;

The dossier of import of essential oils for cosmetology shall contain the following documents:

• Cosmetic declaration;

The dossier of import of essential oils used as medicines shall contain the following additional documents:

• Practice certificates;
• Certificate of sufficient health to practice;
• Certificate of eligibility for drug business;
• Import license;

Above is the import dossier for each type of essential oil. Essential oils depend on the use to classify the goods into which group.

5. Procedures for importing essential oils

The process of importing essential oils 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, sea waybill, certificate of origin, notification of arrival of goods. 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. Self-declaration can easily be stuck with 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 essential oils. 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 essential oils. It is not recommended to leave the declaration for a long time before bringing it down for import procedures.

Step 3. Customs clearance of 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 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. If the goods are brought to the warehouse for preservation and use
of the customs clearance declaration, the liquidation of the declaration and the necessary procedures shall be carried out to bring the goods to the warehouse. In order to be able to bring goods to the warehouse, you need to prepare a delivery order, a pick-up slip at the port, and arrange a pick-up vehicle in advance. Avoid the situation that the declaration has been completed but there is an order from the shipping line to take the goods out of the port.

Above is the entire process and procedures for importing essential oils, looking up essential oil HS codes, and essential oil import taxes. We look forward to hearing from you.

6. Notes when importing essential oils

When importing essential oils, it is necessary to note the following:

• Goods are only cleared from customs when they have fulfilled their tax obligations to the state;
• Imported essential oils need to determine the use of imported for medical treatment will be different from the import process for spa;
• Certificate of origin c/o is a fairly important document, affecting the import tax amount;
• When importing, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;
• Certificate of origin is very important when carrying out import procedures. Can get a tax reduction at the lowest rate;

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.

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