Based on Circular No. 38/2015/TT-BTC and Official Letter No. 11052 TC/TCT dated November 19, 2001, the Ministry of Finance provides the following information:
1. HS Code for Mechanical Component Items
Mechanical components and machinery come in various models and types, so it is necessary to provide detailed declarations about:
- Product name;
- Item code;
- Material;
- Dimensions, shapes;
- Purpose;
- Product catalog (if available).
Customs authorities will rely on this information to make customs clearance decisions or conduct actual cargo inspections.
Some mechanical component items in the product list are subject to valuation-based taxes. Mechanical components can be easily confused when determining the HS code, so businesses should be thorough when making declarations.
2. Import Tax
Import tax is an obligation that importers must fulfill. The formula for calculating import tax is as follows:
Import tax = CIF value x % Tax rate
Where:
CIF value = Ex-factory value of goods + All costs to bring the goods to the first customs gate of the importing country
Import VAT is determined using the formula:
Import VAT = (CIF value + Import tax) x % Tax rate
3. Import Policy
Mechanical component items are not included in the list of restricted or prohibited imports, so the import procedures and documentation are similar to other products.
The set of documentation for importing mechanical component items includes:
- Bill of Lading
- Commercial Invoice
- Detailed Packing List
- Certificate of Origin (CO): It can be in various formats such as D, E, AK, etc., to qualify for import tax incentives
- Product catalog, Quality certificate, Analysis certificate, Insurance certificate…
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HMLF is always available to offer assistance in understanding the procedures with authorities.
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