Are you planning to import UPS for business in Vietnam? Do you want to find out what is the current import tax on UPS and whether there is an import tax incentive for this item? Are you also interested in the UPS import procedure and customs clearance process?
What is an Uninterruptible Power Supply (UPS)?
An uninterruptible power supply, also known as a UPS (Uninterruptible Power Supply), is a device that provides backup power when the main power supply experiences a problem such as a power failure or voltage fluctuations. This device ensures that critical electronic devices can continue to operate for a certain period of time, giving users time to store data and shut down safely. UPS is commonly used in computer systems, data centers, hospitals, and many other critical facilities where a sudden power outage can have serious consequences.
The structure of the UPS consists of a battery that stores power and a circuit that is capable of converting current from the battery to alternating current, which is suitable for the devices used. The UPS power supply time depends on the capacity and capacity of the battery, which can range from a few minutes to several hours, depending on the needs and design of each type of UPS.
UPS import policy
The process of importing UPS units needs to comply with current legal regulations, including the following laws and decrees:
- VAT Law No. 13/2008/QH12 dated 03/06/2008.
- Decision 04/2017/QD-TTg dated 09/03/2017.
- Circular 38/2015/TT-BTC dated 25/3/2015, amended and supplemented by Circular 39/2018/TT-BTC dated 20/04/2018.
- Decree 69/2018/ND-CP dated 15/05/2018.
- Circular No. 09/2019/TT-BKHCN dated 30/09/2019.
- Decree No. 43/2017/ND-CP dated 14/4/2017.
- Decree 128/2020/ND-CP dated 19/10/2020.
The new UPS is not on the list of prohibited goods, so you can carry out import procedures according to general regulations. However, used UPS is on the list of goods banned from import. When importing UPS, you need to comply with the regulations on labeling goods according to Decree 43/2017/ND-CP.
HS Code and Import Tax Rate of UPS
HS (Harmonized System) is a code system used uniformly for all types of goods globally, with the main difference being the tail number between countries. Therefore, the first 6 digits of the HS code globally for a commodity are the same. HDG Logistics shares the HS code sheet for UPS as follows:
UPS under Chapter 85: Electrical machines, electrical equipment and parts thereof; audio recorders and reproducibles; television image and audio recorders and reactors; parts and accessories of the above machines.
8504: Transformers (transformers and current transformers), electrostatic transformers (e.g., rectifiers) and inductors.
85044011: Uninterruptible Power Supply (UPS) (SEN)
According to the import and export tariff, the HS code of the UPS is 85044011. The normal import tax rate is 5%, the preferential import tax is 0% and the VAT is 10%.
The accurate identification of HS codes plays an important role in the process of importing batteries. Errors in identifying HS codes can cause many unnecessary risks:
- Delay in customs procedures: Incorrectly declaring HS codes can lead to prolonged customs clearance time because customs authorities need more time to check and verify product information.
- Administrative fines: According to the provisions of Decree 128/2020/ND-CP, incorrect declaration of HS codes may be administratively sanctioned.
- Delay in delivery: In case of detecting errors, customs authorities may request adjustments or clarifications of information, causing delays in the delivery process and affecting the production and business activities of enterprises.
- Import tax penalty: If you incur import tax, you may face a minimum penalty of VND 2,000,000 and a maximum of 3 times the tax payable.
Labeling of imported goods
The labeling of imported goods not only helps to trace the origin and responsible units but also supports stricter management of goods. In particular, this process is mandatory for batteries imported from abroad.
Label content
Decree No. 43/2017/ND-CP has clearly stipulated the content of labels for items. For batteries, the label should include exporter/importer information, product details, origin and other information in English or language with translation. Customs will thoroughly check the contents of the label during the import process.
Label Placement
The location of the label is equally important. Labels need to be affixed in a conspicuous position on the package such as cartons, wooden bales, product packaging. This saves time for inspection when importing batteries and other items.
For retail goods, the label needs to add manufacturer information, quantity, specifications, date of manufacture, and safety warnings.
Risks when labels are not in accordance with regulations
Failure to label or mislabel can lead to serious consequences such as fines under Article 22 of Decree 128/2020/ND-CP, loss of import tax incentives due to invalid certificate of origin, and the risk of loss and damage to goods due to lack of warning during transportation.
Process of procedures for importing UPS
The process of importing UPS and other electrical equipment is detailed in Circular 38/2015/TT-BTC dated 25/3/2015, which has been amended and supplemented by Circular 39/2018/TT-BTC dated 20/04/2018. Below is a summary of the important steps to help you get an overview of the UPS import process.
Step 1: Customs declaration
First, prepare all import and export documents such as contracts, commercial invoices, packing lists, sea waybills, certificates of origin, arrival notices and HS codes of UPS. Then, enter the declaration information into the customs system via the customs declaration software. Care should be taken when entering data to avoid errors, as this can be time-consuming and costly.
Step 2: Open a customs declaration
After the declaration is completed, the customs system will return the result of the channeling of the declaration. Print the declaration form and bring the dossier to the customs sub-department to open the declaration. Do this within 15 days of the declaration date to avoid penalties.
Step 3: Customs clearance of goods
Customs officers will check the dossier and accept customs clearance if there are no questions. After that, import taxes are paid so that the goods are cleared. In some cases, the goods may be released to be taken back to the storage warehouse.
Step 4: Transport and use the goods
Finally, proceed to liquidate the declaration and carry out procedures to bring the goods to the warehouse. Prepare delivery orders and pick-up slips at the port, and arrange vehicles to pick up goods. Note to avoid the situation that the declaration has been completed but there is still an order from the shipping line, so that the process can be completed smoothly and avoid loss of time and costs.
Understanding the procedures for importing UPS units not only helps businesses save time and costs but also ensures legal compliance. Through this article, we hope you have gained a comprehensive view of the process and the steps required to perform UPS import effectively.
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