Content: I. Import Policies II. Determining HS Code for Furniture in the Import Procedure III. Import Duties on Furniture IV. Labeling of Imported Goods 1. Labels and Regulations for Furniture Imports 2. Content of Labels 3. Placement of Labels on Goods 4. Risks of Not Marking Labels V. Documentation for Import Procedures VI. Import Procedure Steps VII. Important Considerations VIII. Conclusion
I. Import Policies
Import policies for furniture and other goods are regulated by several important legal documents, including:
Circular 38/2015/TT-BTC dated March 25, 2015, and Circular 39/2018/TT-BTC dated April 20, 2018: These are two crucial circulars that regulate the import policies for furniture and various other items, with broad-reaching provisions.
Circular 14/2015/TT-BTC dated January 30, 2015: This circular plays a significant role in regulating the import of furniture products.
Decree 187/2013/NĐ-CP dated November 20, 2013: This decree outlines general rules and regulations related to the importation of goods, including furniture.
Dispatch 8119/TCHQ-TXNK dated December 28, 2020: This dispatch contains specific guidelines related to the import process.
Decrees 43/2017/NĐ-CP dated April 14, 2017, and 69/2018/NĐ-CP dated May 15, 2018: These decrees specify regulations regarding the import and use of specific goods, including furniture.
Decree 128/2020/NĐ-CP dated October 19, 2020: This decree provides new guidelines and regulations related to import procedures and goods management.
According to these legal documents, furniture is not listed in the prohibited import category. However, used goods, including furniture, are in the prohibited import category.
Additionally, for certain products such as tables and chairs from China, anti-dumping duties will be applied to items classified under HS codes 9401.31.00, 9401.39.00, 9401.41.00, 9401.49.00, 9401.61.00, 9401.69.90, 9401.71.00, 9401.79.90, 9401.80.00, 9403.30.00 according to Decision 235/QĐ-BCT.
When conducting the import procedure for furniture for bedrooms, bathrooms, kitchens, and living rooms, the most important aspect is to correctly determine the HS code for the product and comply with labeling regulations according to Decree 43/2017/NĐ-CP. This ensures compliance with all legal requirements and customs procedures when importing furniture.
II. Determining HS Code for Furniture in the Import Procedure
When carrying out the import procedure for furniture, accurately determining the HS code for each product is crucial. The HS code, or Harmonized System, is a globally applied classification system used to identify the inventory and grouping of goods. Here are examples of how to determine the HS code for specific furniture products:
HS Code for Various Chairs: The HS code for different types of chairs typically falls under group 9401.
HS Code for Beds, Cabinets, and Other Furniture: The HS code for beds, cabinets, and other furniture products is usually in group 9403.
Accurately determining the HS code is essential in the furniture import process. If you incorrectly determine the HS code, you may face the following risks:
Fines for Incorrect HS Declaration According to Decree 128/2020/NĐ-CP: In case of incorrect HS declaration, you may be subject to fines as per the regulations of this decree.
Payment of Import Duties with Fines Depending on the Tax Amount: If there is an occurrence of import duties due to incorrect HS determination, you will have to pay the tax. The fine amount can range from at least 2,000,000 VND to a maximum of 3 times the tax amount, depending on the specific situation.
Therefore, to avoid potential risks and ensure compliance with legal regulations, accurately determining the HS code for furniture in the import procedure is essential.
III. Import Duties on Furniture
For imported furniture, the import duty rate in 2023 is 37.5%; the preferential import duty is 25%, and VAT is 8%.
However, these are general rates for common items. Additionally, there are different duty rates for countries with bilateral and multilateral agreements with Vietnam. Contact H-Cargo Logistics for the most accurate advice on HS codes and duties for your imported furniture shipment.
IV. Labeling of Imported Goods
1. Labels and Regulations for Furniture Imports
Marking labels on imported goods is not a new requirement in the import process. However, since the issuance of Decree 128/2020/NĐ-CP, marking labels on imported goods has been more closely monitored than ever. Labeling goods serves the purpose of assisting administrative agencies in managing goods, determining their origin, and identifying the responsible unit for the product. Therefore, labeling goods is an essential part of the furniture import process.
2. Content of Labels
In addition to marking labels, the content of the label is extremely important. The content of labels for furniture products is regulated in Decree 43/2017/NĐ-CP. For furniture, a complete label typically includes the following information:
Information of the exporter (including address and company name).
Information of the importer (including address and company name).
Product name and description.
Country of origin.
This information must be presented in English or other languages if translation is required.
3. Placement of Labels on Goods
Not only is marking labels important, but placing labels correctly on goods is also crucial. When importing, the label on goods should be placed on surfaces such as cartons, wooden crates, or product packaging. Most importantly, the label should be placed in a convenient position for inspection and visibility. Proper label placement helps save time during customs inspection when importing furniture for living rooms, bedrooms, bathrooms, and kitchens of various kinds.
For retail products in the market, additional information such as the manufacturer's name, product quantity, technical specifications, production date, and safety warnings should be displayed.
4. Risks of Not Marking Labels
Not marking labels on goods or incorrectly labeling them can pose the following risks:
Fines According to Regulations: According to Article 22 of Decree 128/2020/NĐ-CP, if the label is incorrectly declared or not marked correctly, you may be subject to fines.
Not Eligible for Special Import Duties: Without a certificate of origin or special conditions required in trade agreements, you may not be eligible for special import duties.
Risk of Loss or Damage: Lack of warning labels can make loading and transportation unsafe, leading to loss or damage to the product.
Therefore, adhering to label marking regulations when importing furniture is extremely important to avoid unwanted situations.
V. Documentation for Import Procedures
Documentation required for import procedures for furniture and other items is outlined in Circular 38/2015/TT-BTC dated March 25, 2015, and amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018. Here are the important documents needed in the documentation set for importing furniture:
Customs Declaration Form
Commercial Invoice
Bill of Lading
Packing List
Sales Contracts
Certificate of Origin
Catalog (if available)
In this documentation set, the most important documents are considered to be the customs declaration form, commercial invoice, and bill of lading. Other documents will need to be provided upon request from the customs.
The certificate of origin is an optional document, but to enjoy special import duties, the buyer should request the seller to provide it.
This means that arranging and storing these documents correctly is crucial to ensure a smooth and compliant furniture import process.
VI. Import Procedure Steps
Step 1. Submit Customs Declaration
Once you have the complete set of import documents from the exporting party, the business proceeds to submit the customs declaration on the ECUS5/VNACC software.
Step 2. Open Customs Declaration
After completing the customs declaration, the customs system will return the declaration result. Depending on whether the declaration is categorized as green, yellow, or red, you will proceed to open the declaration at the corresponding customs office. To open the declaration, you need to print the declaration and bring the import documentation to the customs office.
Green lane: No need for document and goods inspection; goods will be cleared.
Yellow lane: Document and goods inspection required.
Red lane: Document and goods inspection, including physical inspection, required.
Step 3. Goods Clearance
After inspecting the documents, if there are no issues, customs officers will approve the documents, and the business will proceed to pay the taxes. Once paid, the shipment will be cleared on the customs system.
Step 4. Bring Goods for Storage and Use
After customs clearance, you need to take care of and store the goods properly to ensure product quality.
VII. Important Considerations
When importing furniture, consider the following points:
Quality Check: Before importing, check the quality of the product to ensure it is worth it.
Storage Conditions: Pay attention to the storage conditions of goods after import.
Warranty and After-Sales Service: Understand the warranty policy and after-sales service of the manufacturer or supplier.
VIII. Conclusion
While the furniture import process may not be overly complex, it still requires a considerable amount of experience to successfully execute. If you are facing uncertainty and need assistance, trust H-Cargo Logistics – a company with years of leading experience in furniture import. We commit to offering you attractive deals, professional advice, and optimal support for your shipment.
Please note that this translation is a general interpretation, and specific terms and legal references may require further clarification based on the current laws and regulations.
Contact us: H-CARGO INTERNATIONAL LOGISTICS Head office: 36A Nguyen Gia Tri St., Ward 25, Binh Thanh Dist., HCMC, Vietnam Hotline: +84 283 5359 678 Email: info@hcargovn.com
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