Import Customs Procedures For The Non-Commercial - Detailed Service

1. Concept and category of non-trade goods

An increasing amount of non-commercial commodities are being imported in order to meet the demand for use. Now let's examine this item's notion in order to better understand the import customs procedures for the non-commercial!

Imported commodities that are not employed for both commercial and production reasons are referred to as non-trade items. These are imported products meant to be sampled or displayed. Non-commercial products, however, can also be sold following the import procedure; the importing body must simply modify their intended use.

The following is a list of non-commercial goods that are currently imported and exported into the Vietnamese market:

• Humanitarian supplies
• Presents and presents given by foreign people or organizations to Vietnamese people or groups Movable assets owned by this person or organization overseas
• Samples are not compensated.
• Tax exemption applies to Vietnamese individuals' and organizations' temporary exports of products.
• An foreign agency located in Vietnam is the owner of the commodities, and the individuals employed by this organization
• Tools and resources that are temporarily imported and exported for a brief duration
• Upon entering the country, individuals can send their personal luggage in the form of transportation or bring tax-free commodities with them.
• Additional non-commercial products

Moreover, regulation 29 of Decree 134/2016/ND-CP, dated September 1, 2016, exempts from taxation a number of categories of non-commercial products, such as:

• The Socialist Republic of Vietnam is a party to international treaties that exclude imported goods from import taxes.
• Export and import taxes do not apply to goods whose total customs value is less than 500,000 VND or whose total export or import tax amount is less than 50,000 VND for a single export or import.
• Tax is not applied to imported products that are delivered by express delivery and have a value of less than one million dong or a tax liability of less than 100,000 VNĐ..

>>>> CONTINUE: Dependable and prompt import and export license services

2. Preparation of documentation for non-commercial import procedures

On April 1, 2015, import customs procedures for the non-commercial will be made on the VNACCS system in accordance with Circular 38/2015/TT-BTC. At customs branches, businesses and individuals handle the import processes for non-commercial products. When preparing paperwork, importers need to pay attention to the following documents:

• Customs declaration: In compliance with Clause 2, Article 25 of Decree 08/2015/ND-CP, customs declarations must be made truthfully and precisely. The import goods declaration should be submitted in two original copies using form HQ/2015/NK Appendix IV, which was released together with Circular 38/2015/TT-BTC.
• Bills of lading or other transport documentation attest to non-commercial goods exchanges.
• Passport, Visa, or Temporary Resident Card, and one notarized copy of the labor contract (for foreign workers in Vietnam).
• One copy of the household registration, notarized (for Vietnamese persons).
• The service provider has one notarized copy of the importer's authorization letter.

To the tax-free list products, importers must, however, add:

• The Ministry of Finance's tax exemption paperwork applies to gifts or items with a value under the prescribed amount.
• One original permission document copy in case it is needed by another customer.
• One original copy of the financial agency's declaration of non-refundable aid, which complies with the guidelines for non-refundable aid items exempt from VAT, import tax, and special consumption tax.
• One authentic copy of the import and export license.

If the business imports non-commercial items, the following documents must be included with the documentation:

• Application for non-commercial items import and export.
• 1 original Zero-dollar invoice (good just for customs declaration; not redeemable for money).
• Packing list (for commodities that are wrapped differently).

>>>> CLICK FOR MORE INFO: A customs declaration form Vietnam | Writing and research

3. What is the non-commercial import procedure?

Import customs procedures for the non-commercial have very straightforward and easy-to-follow procedures. The following 4-step procedure is followed when importing people or organizations:

3.1. Register the statement

After creating paperwork and papers in compliance with regulations, importing businesses register declarations and are legally accountable for the correctness of the contents stated and the validity of customs records. Next, use the VNACCS program to upload declaration data to the customs system.

3.2. Check the actual goods

Every kind of non-commercial item needs to be examined in person. The Customs Branch Leader makes the final decision regarding the type and scope of the inspection. It is imperative to verify adherence to the guidelines in Point III.2, Section I, Part B of Circular 112/2005/TT-BTC while conducting physical inspections of goods.

3.3. Freight inspector

If there are no questions after reviewing the goods and documentation, the customs officer will accept the documents' clearance. Currently, import tax on the customs declaration can be paid by individuals or units to obtain the clearance of products via customs.

>>>> CLICK HERE: What's customs clearance means? Detailed commodity notification process

3.4. Clearance and receipt of goods

Businesses can obtain barcodes and customs declarations by completing the aforementioned steps. And do provide those documents to the courier firm so they can finish the collection and delivery process!

4. What about the non-commercial import policy?

Non-commercial commodities are not the same as commercial items that businesses buy and sell. As a result, there is frequently a tendency to report the value of the shipment arbitrarily when carrying out import customs procedures for the non-commercial (Q&A rules refer to TT39/2018/TT-BTC). Thus, in order to save time while importing non-commercial goods, people or organizations should be aware of the following:

• In order to expedite censoring, import enterprises must prepare the required documentation, as per the previous requirements.

  • People who work or have worked in Vietnam should be aware that their paperwork should include a labor contract.

  • After working and studying overseas, people return with assets after presenting their visa.

• It is still possible to import certain genetic assets in an individual, non-commercial capacity.

• The importer obtains the appendix and declaration form at Circular 190/2011/TT-BTC, asking for bilingual printing in both Vietnamese and English on two copies of each page.

• Inspection of non-commercial items is required to verify that the reported quantity, form, and quality are accurate.

• Non-commercial goods' total worth does not surpass the ceiling set by the Customs Department.

5. Non-trade import duties

Regulations require non-commercial products to be taxable in addition to goods that are subject to import and export taxes. The value and kind of imported items will be taken into account for calculating import tax. Import tariffs that aren't commercial include:

• Import duty: This is the duty applied to all goods imported into the Vietnamese market. The tariff depends on the type of goods and the country of origin.

• VAT - Value Added Tax: This is the rate of value-added duty applied to goods in the process of importing and distributing products. The value added tax rate in Vietnam is 10% and can vary flexibly depending on the Government.

• Special consumption tax: Only applicable to certain specialty items such as cigarettes, gasoline, cars, beers, etc.

• Import Charges: In addition to taxes, non-commercial goods are also liable for other charges: customs charges, express shipping fees, handling charges at ports, etc.

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6. How to Calculate Non-Commercial Import Duties

Both the import and export of goods, as well as the import customs procedures for the non-commercial, are subject to state tax obligations. The import product determines the trade goods tax. You can consult the calculation of non-traded commodities below:

Import tax = CIF value x % tax rate

In which: CIF is determined by the ex-factory value of the product plus all costs to bring the goods to the border gate.

Besides, import VAT is also determined according to the formula:

Value added tax = (CIF value + Import tax) x % tax rate

Based on the above formula, import tax depends heavily on the hs code (Harmonized System: a series of codes used for all goods in the world). Therefore, when checking in, you need to accurately determine the HS code to avoid being fined according to regulations!

Dolphin Sea Air would like to share with you the regulations and the process for importcustoms procedures for the non-commercial, which are listed above. With any luck, the material above will give you more insight and make the process of preparing your application as simple as possible.

• DOLPHIN SEA AIR SERVICES CORPORATION
• Hotline: 1900986813
• Email: saleshan6@dolphinseaair.com
• Fanpage Dolphin Sea Air Services Corp. - Logistics Company: https://www.facebook.com/dolphinseaairlogistics/

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