Import procedures for used machinery and equipment

 “machinery or equipment” means a complete structure comprised of parts, groups of parts, and components that are interconnected to operate to serve the intended purposes.

“used machinery, equipment and technological lines” are machinery, equipment and technological lines that have been assembled and put into operation after they are manufactured.

Legal Basis for Importing Used Machinery and Equipment

The import procedures for used machinery and equipment are regulated by the following legal documents:

• Circular 23/2015/TT-BKHCN dated November 13, 2015
• Circular 103/2015/TT-BTC dated July 01, 2015
• Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018.
• Decree 69/2018/NĐ-CP dated May 15, 2018
• Decision 18/2019/QĐ-TTg dated April 19, 2019

Conditions for Importing Used Machinery and Equipment:

Based on Article 6 of Decision 18/2019/QĐ-TTg, the criteria for importing used machinery and equipment are as follows:

• The age of the equipment must not exceed 10 years; for machinery and equipment in specific sectors, it may be over 10 years but not exceeding 15 or 20 years (as specified in Appendix I of Decision 18/2019/QĐ-TTg).
• In cases where the age of the machinery exceeds the specified years but its working efficiency is still at least 85% compared to the original efficiency, and the business is engaged in domestic production activities, the machinery can still be imported.
• The machinery must be manufactured according to standards:
  • Compliant with the regulations of national technical standards (QCVN) on safety, energy efficiency, and environmental protection;
  • In cases where there are no QCVN related to the imported machinery and equipment, they must be produced in accordance with the technical specifications of Vietnam’s national standards (TCVN) or the national standards of one of the G7 countries, South Korea, on safety, energy efficiency, and environmental protection.
• Only used machinery, equipment, and technology lines directly serving the production activities of businesses in Vietnam are allowed for import.

Prohibited Import Cases for Used Machinery, Equipment, and Technology Lines:

• Exporting countries have announced the removal of outdated, low-quality, environmentally polluting machinery and equipment.
• Non-compliance with legal requirements on safety, energy efficiency, and environmental protection.

HS Code and Import Tax for Used Machinery:

The import tax depends on the HS code of the machinery. Machinery, equipment, and production lines fall into chapters 84 and 85 of the import-export tax schedule:

• Chapter 84: HS code for boilers, machinery, and mechanical appliances.
• Chapter 85: HS code for electrical machinery, sound recorders, and reproducers, television image and sound recorders and reproducers.

Import Documentation:

• Customs declaration form;
• Commercial contract (Sale contract);
• Commercial invoice;
• Packing list;
• Bill of lading;
• Catalog (if any) and other documents if required by customs.
• A copy of the Business Registration Certificate stamped by the enterprise.
• Inspection certificate issued by an inspection organization.

Import Procedure:

Here are the main steps for importing used machinery, equipment, and technology lines:

Step 1: Declare customs declaration After having all the required export-import documents (contract, commercial invoice, packing list, bill of lading, certificate of origin, arrival notice, and determining the HS code of used machinery, equipment, and technology), the information can be declared on the customs system through customs declaration software.

Step 2: Open the customs declaration After declaring the customs declaration, the customs system will return the declaration classification result. If the declaration is classified, print the declaration and bring the import dossier to the customs sub-department to open the declaration. Depending on the classification (green, yellow, red), follow the steps to open the declaration.

For used equipment, machinery, and technology, an additional age assessment must be conducted at this step. The inspection procedure depends on the inspection center.

Step 3: Customs clearance of the customs declaration After checking the dossier, if there are no issues, customs officers will accept the customs declaration. At this point, you can pay the import tax for the customs declaration to clear the goods.

Step 4: Bring the goods to the storage warehouse The enterprise proceeds to bring the goods to the storage warehouse after registering the inspection service for used machinery and equipment with confirmation from a designated inspection organization.

Within 30 days from the date of bringing the machinery and equipment for storage, the enterprise must submit the inspection certificate to the customs authorities.

In case the inspection result of machinery and equipment does not meet the requirements specified in Article 6 of this Decision, the enterprise will be handled according to the regulations on administrative penalties in the customs sector.