Procedures for importing bicycles

1. Bicycle import policy

The process of carrying out procedures for importing bicycles is stipulated in the following legal documents:

• Circular 23/2015/TT-BKHCN dated 13/11/2015;
• Circular 103/2015/TT-BTC dated 01/07/2015;
• Circular 38/2015/TT-BTC dated 25/3/2015; amended and supplemented 39/2018/TT-BTC dated 20/04/2018;
• Decree No. 69/2018/ND-CP dated 15/05/2018;
• Circular 24/2018/TT-BVHTTDL dated 23/08/2018;
• Decision 18/2019/QD-TTg dated 19/04/2019;

According to the above legal documents, bicycles are not on the list of goods banned from import. Used bicycles are on the list of goods banned from import. In addition, for some special bicycles, it is necessary to carry out the following procedures:

• Children's toy bicycles, when imported, must do a quality inspection. Please refer to the link for procedures for importing children's toys;
• Two-wheeled bicycles carry out normal import procedures;
• Tricycles, when imported, are subject to specialized management of Circular 24/2018/TT-BVHTTDL;

The above are the regulations on the process of carrying out procedures for importing bicycles. If you do not fully understand the above legal documents. Please contact our hotline or hotmail for advice.

2. Determine the HS code of the bicycle

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

2.1 Bicycle 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 code list of two-wheeled and three-wheeled bicycles.

According to the table described above, bicycle hs codes have many different hs codes. The preferential import tax rate of bicycles is very high. The VAT rate on bicycles is 8% or 10% depending on the type.

In addition to the preferential import tax rate, there is also a special preferential tax rate. Special preferential import tax rates are applied to bicycles imported from countries and territories with which Vietnam has signed trade agreements. Therefore, when importing goods, the buyer should ask the seller to provide a certificate of origin. To understand the certificate of origin, you follow the next section on import taxes on bicycles.

2.2 Risks of applying the wrong hs code

Determining the correct HS code is very important when carrying out bicycle 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 bike. Please contact the hotline or hotmail for advice.

3. Determination of import tax on bicycles

Calculating import tax is one of the very important contents in the process of carrying out bicycle import procedures. Import tax is an obligation that the importer must fulfill to the state. Import duties depend on the hs code selected for each specific type of bike. There are two types of import taxes, namely import tax and import VAT. To determine the import tax rate, you can refer to the following tax calculation method.

Import tax determined according to the hs code The import tax 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 % of the VAT rate.

The CIF value is determined by the ex-factory value of the goods, plus all the costs to bring the goods to the first border gate of the importing country.

According to the formula above, it can be seen that the import tax depends on the selected bicycle hs code. The import tax rate depends on where the order is imported from and whether it has a certificate of origin or not. For goods imported from countries such as Europe, India, Australia, Chile, China, South Korea, Japan, Asean countries. The importer should ask the seller to provide him with a certificate of origin (c/o) to enjoy the lowest import duty.

If you haven't determined the import tax for the goods you import. Please contact the hotline or hotmail for advice.

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

The set of dossiers for carrying out procedures for importing bicycles in particular and of other items. Stipulated 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;
• Packing list;
• Commercial invoice;
• Sale contract;
• Certificate of origin;
• Quality inspection dossiers;
• Import license;
• Catalogs;

In the dossier for bicycle import procedures above. The following documents are the most important: Customs declaration, bill of lading, commercial invoice. For other documents, they will be provided when required by customs.

Particularly for quality inspection records, it only applies to toy bicycles. The import license applies to tricycles according to Circular 24/2018/TT-BVHTTDL.

Above are all of them from the dossier for bicycle import procedures. If you don't fully understand the above documents. Please contact the hotline or hotmail for advice.

5. Procedures for importing bicycles

The process of importing bicycles 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 in the bicycle import procedure.

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 and identification of bicycle HS code. 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 bicycle import procedure. 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 bicycles. 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. At this point, it is considered that the boiler import procedure has been completed.

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
of customs clearance declarations, liquidation of declarations and carrying out necessary procedures to bring goods to warehouses. 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 steps to carry out procedures for importing bicycles. If you don't have an idea of the steps to import a bicycle. Please contact the hotline or hotmail for advice.

6. Notes when carrying out procedures for importing bicycles

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

• Import tax is an obligation that the importer must fulfill to the state;
• Components of used bicycle machines on the list of prohibited imports;
• When importing bicycles, goods must be labeled according to 43/2017/ND-CP;
• Determine the correct HS code to determine the correct tax and avoid being fined;
• For the original documents, it is recommended to prepare them in advance. Avoid the situation that goods have arrived with documents that do not have them, which easily leads to storage and storage;

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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