Battery import procedures

The motorcycle and automobile market in Vietnam is always considered one of the most rapidly growing segments globally. Therefore, the business of vehicle parts and accessories is attracting special interest. Among them, the battery business emerges as a potential item because it is an essential device, indispensable for all vehicles. So, what are the current battery import rocedures? Let’s explore in detail in this article to have a clearer view before deciding to venture into this business.

Definition of a Battery

A battery (or lead-acid battery) is also known as an acid-lead battery, a type of chemical battery widely used in various fields, from automobiles, motorcycles, ships to electronic devices, energy storage systems, and backup power for phones and computers. With its ability to store and supply energy efficiently, batteries have become an indispensable part of modern life.

Battery Import Policies

Value-added tax law (VAT) No. 13/2008/QH12 dated 03/06/2008.
Circular No. 38/2015/TT-BTC dated 25/03/2015, amended and supplemented by Circular No. 39/2018/TT-BTC dated 20/04/2018.
Decision No. 04/2017/QĐ-TTg dated 09/03/2017.
Decree No. 43/2017/NĐ-CP dated 14/04/2017.
Official Dispatch No. 4732/TCHQ-GSQL dated 17/08/2007.
Decree No. 69/2018/NĐ-CP dated 15/05/2018.
Circular No. 41/2018/TT-BGTVT dated 30/07/2018.
Circular No. 09/2019/TT-BKHCN dated 30/09/2019.
Decision No. 3810/QĐ-BKHCN dated 18/12/2019.
Decree No. 128/2020/NĐ-CP dated 19/10/2020.

According to current legal documents, batteries are not on the list of prohibited imports. However, to ensure the import process goes smoothly, please note the following points:

Used batteries are on the list of prohibited imports.
When importing new batteries, you must comply with the labeling regulations according to Decree No. 43/2017/NĐ-CP.
Accurately determine the HS code (customs code) to apply the appropriate tax rate and avoid penalties.
For batteries used in motorcycles, electric vehicles, electric bicycles, you need to conduct quality checks before importing.

Labeling Imported Goods

Labeling imported goods not only helps track the origin and responsible units but also supports tighter goods management. This process is mandatory for imported batteries.

Label Content

Decree No. 43/2017/NĐ-CP specifies the label content for items. For batteries, labels must include information on the exporter/importer, product details, origin, and other information in English or accompanied by a translation. Customs will thoroughly check the label content during the import process.

Label Position

The label position is equally important. Labels must be placed in visible positions on the packages like carton boxes, wooden crates, and product packaging. This helps save inspection time when importing batteries and other items. For retail goods, the label needs to include manufacturer information, quantity, technical specifications, production date, and safety warnings.

Risks of Incorrect Labeling

Not labeling or mislabeling can lead to serious consequences such as fines according to Article 22 of Decree 128/2020/NĐ-CP, loss of import tax incentives due to invalid origin certification, and the risk of goods loss or damage due to lack of warnings during transportation. Therefore, we recommend complying with legal regulations on labeling when importing batteries.

HS Code for Batteries and Import Tax

HS Code for Batteries

According to the Import-Export Tariff, the HS code for batteries belongs to Chapter 85, Group 07: Electric batteries, including separators, whether rectangular (including square) or not.

Specific classification:

850710: Lead-acid batteries, used to start piston engines.
- Other types:
  - Nominal voltage 6V or 12V, discharge capacity not exceeding 200Ah:
    - 85071092: Height (excluding terminals and handles) not exceeding 13cm.
    - 85071095: Height (excluding terminals and handles) over 13cm but not exceeding 23cm.
    - 85071096: Height (excluding terminals and handles) over 23cm.

Accurately determining the HS code plays a crucial role in the battery import process. Mistakes in determining the HS code can lead to several unnecessary risks:

Customs procedure delays: Incorrect HS code declaration can prolong the clearance time as customs authorities need more time to check and verify product information.
Administrative penalties: According to Decree 128/2020/NĐ-CP, incorrect HS code declaration can lead to administrative penalties.
Delivery delays: If errors are detected, customs authorities may require corrections or clarifications, causing delays in the delivery process and affecting business operations.
Import tax fines: If import taxes arise, you may face fines ranging from a minimum of 2,000,000 VND to a maximum of three times the payable tax amount.

Battery Import Tax Rates

Depending on the specific item and HS code, applicable tax rates will vary. The following information is for reference only, please contact HDG Logistics for detailed and accurate consultation.

Value-added tax (VAT): 8%
Common import tax: 5-37.5%
Preferential import tax: 0-25%

Battery Import Documentation

The set of documents for battery import procedures and other items includes the following documents:

Customs declaration.
Sea waybill.
Commercial invoice.
Sales contract.
Packing list.
Certificate of origin (if any).
Quality inspection documents.
Table of contents.

Battery Import Procedures

The battery import procedure, like other items, is detailed in Circular 38/2015/TT-BTC dated 25/03/2015 and Circular 39/2018/TT-BTC dated 20/04/2018. Here is a summary of the main steps in this process:

Step 1: Customs Declaration

Prepare all export-import documents, including contracts, commercial invoices, goods lists, sea waybills, certificates of origin, and arrival notices. Accurately determine the customs instruction code for the battery. Declare import information into the customs system through specialized software.

Step 2: Quality Inspection Registration

For batteries used in motorcycles, electric vehicles, electric bicycles, quality inspection registration is mandatory according to Circular 41/2018/TT-BGTVT.

Step 3: Customs Declaration Opening

After completing the declaration, the customs system will classify the declaration. If the declaration is classified, print and bring the import documentation to the customs sub-department to open the declaration. The following steps will depend on the classification result (green, yellow, or red).

Step 4: Goods Clearance

After completing the inspection without any arising issues, customs officers will approve the clearance declaration. Proceed to pay import taxes and complete goods clearance procedures.

Step 5: Transportation and Usage

After the declaration is cleared, liquidate the declaration and complete the necessary procedures to transport goods to the warehouse for storage and use.

The above information details the battery import procedures that hdglog.vn wants to share with you. If businesses have any questions regarding HS codes, battery import taxes, please contact HDG Logistics for quick consultation and support.

HAI DANG GLOBAL LOGISTICS COMPANY LIMITED (HDG Logistics)

Hanoi: Floor 5, 29 Company Building, 73 Nguyen Trai Str., Thanh Xuan Dist., Ha Noi City, Vietnam.

Hotline: (024) 3207 6996

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Hotline: (028) 6251 9969

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Hotline: (0225) 3559 088

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