Export procedures for aluminum ingots

Aluminum ingots, also known as unprocessed aluminum, are a product that has been exported a lot in recent times, especially to markets such as China, South Korea and the Middle East. Businesses are wondering about the export procedures for aluminum ingots and the process of aluminum ingots export policies? Join HDG Logistics to find out through the following article.

What is Aluminum Ingot? Advantages and applications of aluminum ingots

Aluminum ingots are pure aluminum that is cast into ingots, usually in the form of long bars and rectangles. The manufacturing process involves pouring molten aluminum into a fixed mold and then cooling it to form.

Aluminum ingots usually have high purity and good ductility, and are easy to bend and machine. This makes aluminum ingots an ideal material for applications that require high flexibility such as in the electronics industry, accessory manufacturing, and decorative products.

Aluminum ingots are also frequently used in the manufacturing of electronic components, door and window frames, home appliances, interior decoration, and many other applications.

The situation of aluminum bullion exports in Vietnam

Main export markets: Vietnam mainly exports aluminum ingots to China, South Korea and Middle Eastern countries. China is the largest market with strong demand for aluminum raw materials used in the manufacture of equipment and machinery.

Output and demand: In 2022, Vietnam’s aluminum bullion exports to China have increased by more than 150%, reaching nearly 500 thousand tons. It is expected that the demand for importing aluminum ingots from Vietnam will continue to increase in the near future.

Data from China Customs shows that the country’s aluminum imports in the first two months of 2021 increased by 150.7% year-on-year, because domestic aluminum prices are higher than global prices. The amount of unprocessed aluminum and aluminum products imported into China in January and February 2021 was 455,128 tons, up from 181,500 tons in the previous year. The sudden increase in aluminum prices has forced China to consider selling aluminum reserves to stabilize prices.

Experts forecast that the global aluminum market will witness a strong divergence. While aluminum prices in China are expected to continue to rise for at least the next few months, consumers in the West are shifting to using aluminum from reserves. When the U.S. aluminum import tariff expires, aluminum prices are expected to gradually fall, possibly to $570 per tonne by the end of 2022. The bullish trend is forecast to continue, which will benefit Bauxite suppliers, including Vietnam.

Export policy of aluminum ingots

Exported aluminum ingots are not on the list of goods under specialized management and do not require an export license. Therefore, businesses can carry out the export procedures for aluminum ingots as for ordinary goods.

HS code for aluminum ingots

The HS code for aluminum ingots is in chapter 76, heading 7601 of the Import and Export Tariff 2024. For unprocessed aluminum ingots, the HS code is 76012000 and the export tax is 5%. For support in customs procedures and transportation of aluminum ingots, businesses can contact  logistics companies with experience in this field.

Export procedures for aluminum ingots

When carrying out export procedures for aluminum ingots, enterprises need to prepare the following set of documents:

• Export Declaration: This document is required, providing a detailed description of the export shipment.
• Contract of Sale: This contract must specify terms regarding pricing, payment, shipping, delivery, insurance, and other factors.
• Commercial invoice: This invoice should contain details about the goods, including the names and addresses of the buyer and seller, product description, quantity, price, and payment terms.
• Packing slip: A detailed list of all the products in the shipment, including the description, quantity, and weight of each product.
• The documents required for import may include Certificate of Origin (C/O), Certificate of Quantity (C/Q), and other documents if required.

These documents are not only necessary for customs clearance but also help the business export process of aluminum ingots to be smooth, avoiding legal troubles and customs procedures. Make sure your export customs records are complete and accurate so that the international trade process goes smoothly.

Step 1: Prepare Customs Documents

First, enterprises need to prepare a complete customs dossier, including:

• Declaration of export goods.
• Sale contract.
• Commercial Invoice.
• Packing List.
• Other documents required by the importing country such as Certificate of Origin (C/OCertificate of Origin), Certificate of Quality (C/Q – Certificate of Quantity), etc.

Step 2: Submit the customs declaration

After completing the preparation of the dossier, the enterprise will submit the customs declaration to the competent customs office.

Step 3: Check the customs declaration

The customs office shall examine the declaration along with customs dossiers and documents in accordance with current regulations.

Step 4: Channeling the declaration

Based on the test results, the declaration will be processed in different flows to take the next steps.

• Green channel: Customs clearance immediately after completing tax obligations and proceeding to receive goods;
• Gold channel: Need to submit documents to customs for inspection;
• Red Channel: Simultaneously check the actual documents and goods. When finished, proceed to receive the goods.

Step 5: Customs clearance

If the dossier meets all the conditions, the aluminum ingots will be cleared and the business can start exporting.

For aluminum ingots, it is not necessary to belong to the list of specialized management or apply for an export license, businesses can export as normal goods. However, understanding the process and complying with regulations is crucial to avoid legal risks and ensure a smooth export process.

Exporting aluminum ingots not only improves export capabilities and expands the market, but also brings significant economic benefits to businesses. With careful preparation and compliance with the correct process, businesses can make the most of the opportunities from this promising aluminum industry.

Above is the latest updated aluminum bullion export procedure that businesses can refer to to export aluminum bullion quickly and conveniently. For more information or to receive detailed advice, please contact HDG Logistics.